Energy Efficiency Investments Hold the Key - A Strategy to Tackle the Economy – and the Climate. By Lisa V. Pilgaard, Exec. Communication Advisor, Danfoss A/S

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We have a financial crisis on our hands, it is global and it appears to be taking its time to pass. But what is the key to navigating a business safely through these troubled waters? And what does it take to ensure that the business stands even stronger once the storm passes and markets become less volatile?  Do global trends offer a solution?

Niels B. Christiansen, CEO & president of the Danfoss Group, confirms that these issues are on the top of the agenda. The global industrial group, with headquarters in Denmark, has over 28,000 employees across the world, including 3,000 in China. The group produces a wide range of components and solutions that promote energy efficiency.

“The financial crisis is affecting demand across the globe. Demand is declining, and therefore no regions or countries remain untouched by the crisis; not even Asia and certainly not China, which enjoys a large export to countries overseas,” says Niels B. Cristiansen.
 
Keep an Eye on Long-Term Goals
He believes that part of the solution for the global financial crisis is to be found through focusing on global trends, some of which are amongst the most important drivers of the Danfoss business.

“Although companies are focusing on addressing the crisis at hand, it is important that they still keep an eye on the long-term goals and continue to invest in the areas that pave the way to reaching those goals,” says Niels B. Christiansen.

“There is no doubt that the global trends in regard to climate, environment and rising costs of energy are here to stay and will play an important role in setting the scene for business in the future. When the markets return to more stable conditions, these issues will return to the top of the agenda.”

Danfoss Aims to Grow in China
China is an area that Danfoss is particularly committed to. One of the Group’s ambitions is to make China its second home-market after Europe, and the company has done well on its journey towards that goal.

“We are very proud of our presence and growth in China,” says Mogens Terp Paulsen, Danfoss China president, based in Beijing.

“We came here in the mid-1990s, and since then we have grown to a point where we are generating sales of 1,874 million RMB in China. Today, 3,000 people work at the company’s sales offices, production sites and R&D centres in China, and we aim to continue to grow.”

China Also Feels the Impact
Part of the Danfoss strategy is to contribute to China’s sustainable economic growth through increased energy efficiency. China is feeling the impact of the global crisis, as many of the countries it exports to have been hit by the recession, but by taking action with regard to climate, jobs and growth can be created.

Another incentive is that saving energy and reducing CO2 emissions have become top priorities for the Chinese government. This is outlined in the so-called 11th Five-Year Plan and can have an important impact on China’s sustainable growth over the next three decades. According to China’s Ministry of Environment, China will invest more than 1.4 trillion RMB in the environment over the period of the 11th Five-Year Plan. And by 2010, China’s environmental industry is set to have reached a total annual turnover of 800 to 1,000 billion RMB.

This means that Danfoss has the potential to make a difference while increasing its business in China.  

Facts about the Danfoss Group
The Danfoss Group was established in 1933 and is today one of Denmark’s largest industrial groups, with more than 28,000 employees. The activities of Danfoss Group extend globally, with more than 100 companies around the world. The company is a market leader in the development and production of mechanical and electronic components that enable energy savings in many sectors.

About Danfoss China
In the mid-1990s Danfoss extended its activities to China. Today, Danfoss China is a major player on the Chinese market, with sales of 1,874 million RMB and 3,000 employees. Last year, three new facilities in different provinces in China were opened, and altogether Danfoss has representative offices and sales offices in eight cities as well as production plants in six cities in China.