Kim Fausing, CEO of Danish engineering giant Danfoss, has emphasized the importance of maintaining a strong local presence in China as uncertainty in the world disrupts global supply chains.
Speaking to China Global Television Network (CGTN), Fausing said that opening plants within China to better serve Chinese buyers has allowed the company to maintain supply chain stability.
"What it does mean for us is nothing but that we need to partner even stronger with the customers we are serving and it's really not a slogan. What we are doing is about having short distances," he said.
He explained that Danfoss has been steadily localizing its operations across its global supply chain to stay agile in a volatile environment.
"we have done in this very global supply chain, we have localized more and more. So it means, yes, we can act with the global supply chain but we are really trying to move as close to our customers as possible to serve better because there's so big ups and downs and stop-and-goes and to have a long supply chain that's globally sometimes hard to serve customers with. So we are very local and we are very, very close to our partners so that we make sure we can serve them exactly where they need us," he said.
Having operated in China for 30 years, Danfoss now boasts 12 manufacturing bases, three application development centers, and one global refrigeration research and development and testing center in the country.
Danfoss CEO highlights importance of local connections in Chinese market
