Danfoss, meeting industry’s toughest challenges

Danfoss, worldwide industry leader in refrigeration and airconditioning, is facing a challenge, perhaps its toughest one yet — how to ensure continued economic growth while protecting the environment against resource depletion and pollution.

As a leading producer of precision mechanical and electronic components and of intelligent "mechatronic" devices, Danfoss wants not only to be known globally as a company that just churns out compressors and industrial hardware to cool homes and offices, but is even more concerned with its total commitment to the environment and to labor.

Unlike other global producers of refrigeration and airconditioning products, however, Danfoss gives meaning to its social responsibility of saving the environment and being sensitive to people (its employees and customers worldwide) by employing technologies that produce state of the art but ecologically- friendly products.

Its adherence to strict production standards set under its ISO Certifications 9000 and 14001 ensures that Danfoss’ operations will lead to the sustainability of the planet and its people. Thus, the company has often been called the "giant with a heart."

Giant as it is with its presence in four continents, Danfoss got even bigger with its recent acquisition of Scroll Technologies of the US, which last year earned revenues of $125 million.

Danfoss continues to be a family-owned but global company and has been operating in the Philippines for a decade capturing over 80 percent of the market. Its global sales in 2005 stood at euro 200 billion.

The company has modern factories in four continents and employed 19,300 people as of 2006. These factories churned out 250,000 items a day. Its strength lies in its research and development, which has introduced latest technologies like load-sensing hydraulics, intelligent refrigeration controls, radiator thermostats, frequency converters, CFC-free compressors (CFC-chlorofluoro carbons-are responsible for the depletion of the earth’s ozone layer) and thermostats for household appliances.

Danfoss’ commitment to the environment is manifested in its production of lines that help conserve energy, increase industrial efficiency and improve the living standards of people around the world.

Its acquisition of Scroll Technologies of the US, another leader in the industry whose 750 people produced 500,000 compressors in 2005 from its 40,000 sq.foot manufacturing center in Arkansas, is another indicator that Danfoss is in the business for the long haul.

The Scroll Technologies plant is considered a world class facility that has been adjudged 1999 Top 10 Best Plants by Industry Week magazine and in 2001 the "Arkansas Quality Award", based on the stringent Malcolm Baldridge National Quality award criteria.

Since 1995, Scroll had been operated by two US companies, Carrier Corp, a unit of United Technologies Corp and Bristol Compressors, a Johnson Controls company. The plant produces compressors from 3.5 to 10 TR (tons of refrigeration) using R-22, R407C and R-410A refrigerants or what are considered suitable for commercial, light commercial and upper range of residential air conditioning applications. The Scroll compressor design has been awarded with 120 patents.

Danfoss Executive Vice President/ COO Niels B. Christiansen said: "This is an important step and a historic acquisition for Danfoss. We have now ensured ourselves a very attractive position in the compressor market for air conditioning in commercial buildings. At the same time, we expand our product portfolio and improve our position even in the residential market. This acquisition will clearly strengthen our ambition of further growth within a traditionally important business area for Danfoss."

Scroll Technologies will be integrated into the Danfoss Commercial Compressors Organization (DCCO), which already runs three factories that produce scroll compressors in France, USA and China. DCCO is under the Danfoss Refrigeration & Airconditioning Division.

"We have been producing scroll compressors for several years and we consider this technology to be an important element in addressing the increasing demand for efficient and environmentally sound solutions in our market," says Vagn Helberg, President of the Danfoss Refrigeration & Air Conditioning Division.

Geraud Darnis, President of Carrier Corp said: "Divestiture of our stake in Scroll Technologies to a world-class compressor manufacturer is a positive development. This is consistent with our strategy of sourcing a substantial part of our compression needs from global and focused compressor manufacturers including Danfoss."

"We are pleased to transfer this part of our activities to Danfoss, who we know to be a respected and reliable player within this segment," says John Kennedy, EVP of Johnson Controls.