Great Expectations for the Future. By Humphrey Lau, Chief Executive, Grundfos China

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”At present, Grundfos China has more than 1,000 skilled and committed employees. In 10 years, there may be 15,000. I predict that developments will be very rapid in the years to come. We have been given the task of making Grundfos China the Group’s second home market. It is historical for a country outside Denmark to be appointed a home market. As a result we have been given a great deal of autonomy and thus a great responsibility, which will be interesting to manage”, says Humphrey Lau.

Recently, Grundfos unveiled some of the plans that have been made for the Chinese market. With the appointment of 41-year-old Humphrey Lau as chief executive of Grundfos China, the plans are about to be implemented.

Humphrey Lau has been appointed head of all activities in China, including manufacturing, supply, R&D, business development and sale of all Group products.

We need to jump on the bandwagon
”China is on its way to become the world’s biggest pump market. On top of that, the country is focusing on rationalising its energy consumption, and climate issues are being addressed. A vast market within energy and the environment is developing. In order to gain success in that market, we must interact with local customers, the local community and the local authorities. In short, we must jump on the bandwagon, because if we don’t, we risk losing - not only in China, but on the entire global market. We must meet our targets using the competences we already possess, while at the same time developing new ones. We need to understand that future rules and demands in the market are partly set by our ability to form alliances with the right organisations and interested parties, in particular within the fields of energy and environment”, says Humphrey.

Grundfos Suzhou already hosts a major R&D facility with almost 70 employees. In addition to global assignments, future activities of the facility will form the basis that is to ensure the development of pumps for the Chinese market. This may include the development of solutions that lie outside the traditional sphere, i.e. pumps.

Find your strength and use it
”We want to place ourselves in a strong position in China, to set up strategic cooperation with leading players in China and form strong ties with the government. The task involved in identifying and raising the level of competence in Grundfos China requires qualifications that I possess as a result of my background from various cultures. For example, I will be using my experience to build bridges across professional groups to ensure that we do not end up living ‘separate lives’. We do not want to create stereotypes, but we must know each other’s strong points and use them to grow. In order to realise our ambitious visions for China, we simply have to identify and utilise synergy effects across our organisation in China. We must constantly develop our competences within sale, production and R&D. Yet we also need to read signals in the market to an increasing extent and use them to manage all our efforts here. In addition, we must be able to attract and use the many brainy people locally in China.

In China, degree programmes within natural science are completed at an impressive level, and Grundfos must try to attract some of the researchers who graduate from Chinese universities. We want to be valued on the basis of what we can to and what we do – not on whether our background is Chinese or Danish”, says Humphrey.

According to Humphrey Lau, Grundfos is to lead the way in terms of energy and climate in China. In October, this will be realised in the form of an energy initiative, where Group technology will be in focus at a high-profile Sino-Danish conference in Beijing. Grundfos breaks the ice and is one of the first foreign companies to show how part of the climate challenge may be addressed in China. The idea has been fostered by Humphrey Lau.

Action here and now
”The Chinese show a marked interest in our ideas. We want to find out how much we are able to cut the emission of greenhouse gasses by utilising technologies that are known and already being used. This is not about setting up think tanks and engaging in long, theoretical discussions – it is about taking action here and now. I want to show that Grundfos can contribute to make improvements within the areas of finance, climate and energy worthwhile within a relatively short period of time. Finances often put a stop to energy and climate projects. This project is intended to show that it does not have to be like that”, says Humphrey.

Humphrey Lau has given himself a couple of months to settle in as the new chief executive of the numerous activities that take place in China.

”I spend much time talking to and listening to the people around me. I need all their input to prepare the strategy that will take us further. I have visited the various Grundfos facilities several times already, and I am happy to see that we hold a strong position. These are highly skilled people who are prepared to work hard, and I am happy to see that the Grundfos employees keep in mind that is should be enjoyable to go to work”, says Humphrey with a smile.

The development in China, seen from Humphrey’s perspective. He explains that the model below shows how the market situation used to be, how it is at present, and where we need to focus in future.

For further information, you may contact Dan Prangsgaard at dprangsgaard@grundfos.com

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