This case describes the activities of the Danfoss Group in China, how they entered the market and became a close partner of different companies in China. The Chinese market is still considered to be quite closed and difficult to enter. Therefore, the Danfoss China case provides interesting insights for international businesses and students thinking about market entry to China.
Danfoss was founded in 1933 by Mads Clausen and is today owned by the Bitten and Mads Clausen Foundation. The Danfoss Group provides products and services used in air-conditioning, heating buildings, controlling electric motors, compressors, and powering mobile machinery. Danfoss joined the United Nations Global Compact in 2002 and claims to be socially and environmentally responsible, being active in the field of solar and wind power as well as district heating and cooling infrastructure. Danfoss employs approximately 24,000 people worldwide with its headquarters in Nordborg, Denmark. In 2006, Danfoss announced that China had become their second home market after Europe.