Grundfos bullish on China's pump market

Danish pump and water solutions provider Grundfos is shifting its focus in China from selling standalone pumps to delivering integrated pumping systems, as customers place greater emphasis on operating costs and comprehensive system performance, a senior executive said.

The shift comes amid intense competition in China's pump market. In its latest China annual business review, Grundfos cited price competition and pressure on margins, highlighting the need to offer customers measurable benefits through technology.

"Chinese customers increasingly want lower lifecycle costs, reliable operation and simpler management," said Robin Konijn, vice-president and head of solutions and marketing for commercial building services at Grundfos, in an interview with China Daily.

The company's latest products illustrate how it is connecting individual pumps to wider building systems. At the ninth China International Import Expo in Shanghai, Grundfos launched four products for the Asian market, including the TPE3 intelligent in-line pump for commercial buildings and district energy systems that supplies heating or cooling to multiple buildings.

The TPE3 adjusts pumping to demand and connects to building management systems, allowing it to operate within a coordinated heating and cooling system, driving more efficient use of both water and energy, the company said.

Its presence at the CIIE has translated into commercial orders. Grundfos' GENIECON pump-control system, introduced at last year's expo, combines control of multiple pumps with monitoring and connectivity. It has received orders this year, including for a domestic water supply project at a China Mobile communications facility, Konijn said.

The company has attended all nine editions of the CIIE and supplies equipment for the air-conditioning system at its venue, the National Exhibition and Convention Center in Shanghai. Konijn said the dual role helps Grundfos understand both emerging customer needs and the operating demands of a complex building.

The broader challenge for such systems is to meet several operating requirements at once. Over the next three to five years, customers are likely to assess energy consumption, water use and reliability, Konijn said, adding that an improvement in one area should not shift the burden elsewhere.

The vice-president cited data center cooling as an example.

"Liquid cooling is not automatically a water-and-energy saving solution. Its performance depends on the entire cooling system, from capturing heat and circulating fluid to releasing heat outside the facility."

That need for coordination also applies across industrial and commercial parks. For sites seeking to cut emissions, Grundfos aims to coordinate heating, cooling, water supply, water reuse and heat recovery to improve overall performance, Konijn said.

For existing buildings, achieving those gains also means working out how to upgrade equipment and manage it after installation. Buildings account for about half of global electricity consumption, according to a recent International Energy Agency report, which called for investment in renovations, upgrades and efficient technologies that deliver lasting energy savings.

Such projects require expertise that building owners may find costly to develop themselves.

Yu Bo, a senior engineer at State Grid's Tianjin integrated energy services company, said building retrofits required assessments to identify energy-intensive operations and develop coordinated solutions.

Both the upgrades and subsequent operations demand specialized skill sets, Yu said.

For Grundfos, delivering integrated systems involves bringing more participants into a project at an early stage. Konijn said the company wanted building owners, design institutes, equipment manufacturers, and system integrators involved earlier in defining requirements, testing applications and refining solutions.

The emphasis on system efficiency also extends to standards. Grundfos is among the organizations drafting a proposed mandatory Chinese standard on energy-efficiency requirements and grades for centrifugal pump units for fresh water. Led by the China National Institute of Standardization, the initiative seeks to extend energy-saving efforts — from individual equipment to pump units and systems.

Supporting its work with customers is a local manufacturing, research and service network, including plants in Suzhou and Changshu, Jiangsu province, and a research and development center in Suzhou.

The approximately $100 million Changshu plant opened in 2024 to serve commercial building customers in China and other Asian markets.

Konijn said the local network helps adapt global technology to Chinese customers' operating needs and support projects throughout a system's operating life.

"Customers need technologies that work together, retrofits that minimize disruption and savings they can verify," he said.

lijing2009@chinadaily.com.cn