Danfoss Compressors GmbH

Danfoss Compressors GmbH
GmbH (private company)
Industry Refrigeration and cooling compressors
Founded 1956
Defunct 2010, company was sold. Renamed and rebranded by new owner.
Headquarters Flensburg, Germany
Mads Clausen visits building site of Flensburg plant (1956)
Compressor No. 100,000,000. From left: Director H. J. Gustavsen, Bitten Clausen, Jørgen M. Clausen and Peter J.M. Clausen
Danfoss Compressors plant in Flensburg, end of the 1950s
Danfoss Compressors plant in Flensburg, extended production area in the 1960s/70s

Danfoss Compressors GmbH (temporarily Danfoss Household Compressors GmbH) was founded as an autonomous company within the Danish Danfoss Group. Between 1956 and 2010, the company manufactured hermetic compressors as a subsidiary of Danfoss....[1]

In 2010, Danfoss Group separated from these parts of its compressor programme. Danfoss Compressors GmbH was sold to Munich based industrial holding Aurelius AG and since then established a new brand under the name Secop GmbH.[2]

The product portfolio of the company comprises three application areas: hermetic compressors for household appliances, for the light commercial market and for mobile cooling solutions.[3]

Early history

In 1933, Mads Clausen, engineer for airconditioning and refrigeration, established the company "Dansk Køleautomatik- og Apparat-Fabrik" (Danish Cooling Automatic and Appliance Factory) in his old boyhood attic room in Elsmark on the Danish island of Als.[4] He started producing automatic valves for refrigeration plants which before expensively had to be imported from the United States.[5]

Clausen did not have a large budget to work with. His modest equipment in the early days consisted of a manual air pump and a zinc trough for testing the valves. With several further changes and additions, the Danish engineer lay the foundation of what later was to become Danfoss A/S, the largest industrial group in Denmark.[6] The headquarters were also located in Elsmark in the Nordborg community where the first modern factory building covered 50.000 square meters - which was even doubled later on.

Having successfully overcome basic difficulties in the production process, the company began to flourish. Between 1935 and 1938, a long list of new valve- and thermostat-products were introduced – automatic spring valves, ball float valves, thermostats, pressure-controlled valves, diaphragm valves, suction valves, room thermostats, constant-pressure valves and drying filters.[7] The new logo "Danfoss" was attached to all valves. Danfoss is a compound word, created from the words Danmark (Denmark) and fosser (stream, sparkle in Danish).[8]

The valves, especially the thermastatic valves that Clausen developed, were to become the best known product of the company. The energy saving thermostats did not become a major success, however, until the energy crisis of the 1970s demanded a reaction and new legislation made the use of thermostats valves obligatory.[9]

In 1946, the word from the logo became the official company name. Danfoss opened an office in Kopenhagen and employed 261 people.[10]

Beginning of the compressor production

After the Second World War, the development of affordable individual cooling solutions theatened the success of Danfoss' main product, the expansion valve for large cooling plants. American companies had developed comparatively small hermetic compressors for use in home refrigerators. In Denmark, a few companies also tried to set up production lines for hermetic compressors. Realizing that the end of the big community cooling facilities was imminent, Mads Clausen decided to explore the possibilities to produce compressors himself.[11]

During a trip to the United States and Canada in the fall of 1950, Clausen visited several manufacturers of hermetic compressors and meticulously gathered information. He was not only interested in technical details of the machinery, the tools and constructions. He also took note about organisational details, compensation systems and output optimisation. Clausen finally managed to enter a licensing agreement with Tecumseh, starting on January 1. 1952. The agreement allowed Danfoss to manufacture hermetic compressors and sell them world-wide except for the US, Canada, Great Britain and Ireland. The production in Nordborg started in 1951.

The first compressor, P 101, was nicknamed "Pancake" due to its flat appearance. It influenced the development of refrigerators for household appliances in Europe. In 1952, Danfoss already managed to produce and sell 5,000 Pancake-compressors, which accounted for 10% of the company turnover. Over the years, the compressor business made up 25 to 35% of the Danfoss Group business volume, making it an important keystone of the Danfoss product portfolio.[12]

History

1956 the compressor production was relocated to Flensburg in northern Germany and the limited company "Danfoss Compressors GmbH" (temporarily "Danfoss Household Compressors GmbH", today "Secop GmbH") was established. With the foundation of Danfoss Compressors GmbH in 1956, a new autonomous location for the production, sales and distribution of hermetic compressors was incorporated. The production started in 1958.[13] The first PW compressors, completely developed by Danfoss, were distributed and began to replace the Pancake-type. Productivity was raised from 1,000 compressors per week at the beginning of that year to 1,750 at its end.

From January 1959 on, the plant worked in two shifts, producing 8,000 units per week. The most important customers were Bauknecht, Siemens and Bosch, manufacturers of household refrigerators, which more and more become a part of common day-to-day live.[14]

1960: Introduction of synthetic materials and oils for improved stability in low as well as high temperature range. Synthetic materials provide stable, fixedly defined properties, while natural materials are liable to certain fluctuations.[15]

1961: Danfoss became an incorporated company. Mads Clausen assumed the chairmanship of the board until he died on August 27, 1966. His wife Bitten took over the chairmanship while Andreas Jepsen became managing director.

By 1968 1,372 people were employed in Flensburg.[16]

In 1970, plant no. 2 was completed. The foundation stone was laid when the demand for household compressors rose enormously by the mid-1960s and an addition to plant no. 1 was needed. The number of employees passed the mark of 2,000. A new compressor line and the PTC starter for light commercial appliances were introduced.[17]

1972 the Danfoss Group turnover rose to 1 billion danish kroner.[7] With the FR compressor line, Danfoss Compressors introduced a standard compressor which used the R134a refrigerant. The compressor was designed for compact commercial cooling solutions like beverage coolers, dispensers, vending machines, cooling cabinets and ice making machines as well as heatpumps and dehumidifiers[18] trong heat-trapping gas which was also used by the automobile industry as refrigerant in the air conditioning in cars. An EC guideline forbids the use of R134a in newly approved car types since December 31, 2011.

1974: The production of the TL compressor started. During just 18 months, more than one million units of the TL were sold. As of 2008, approximately more than 100 million TL devices worked in refrigerators all over the world.

1977: DC powered compressors for use in mobile cooling devices were introduced.[18] In this year, the 50 millionth compressor was built.[7]

1985: The Danfoss Turnover reached 5 billion Danish kroner (150 million US$ or 125 million Euro).[7]

1988: Centralisation of production and sales in Flensburg. Danfoss Compressors took over the production of condensing units from the Danfoss plant in Offenbach. That plant was closed down in 1993. The group turnover amounts to 6.3 billion kroner (1 billion US$ or 846 million Euro).

1989: The 100 millionth compressor was delivered.[1]

1993: Isobutane was used as refrigerant in newly developed compressor lines. R600a replaced R134a, which had been used in household appliances before. R600a is not climate-damaging like R134a is, it is inexpensive and mixable with mineral oils. The downside: It is an easily flammable gas. In this year, Danfoss also built a new production facility for compressors in Crnomelj, Slovenia (Danfoss Compressors d.o.o).[1]

1995: The compressor production of Danfoss Compressors S.A. de C.V. (Mexico) started.

1997: 150 million compressors have been produced.[1] The turnover of Danfoss reaches 13.1 billion kroner (2.09 billion US$ or 1,75 billion Euro).

1999: Rollout of compressors for R290.[19] This refrigerant is used in cooling appliances and heatpumps. it has a low greenhouse potential, but like R600a it is easily flammable. Sales of the year: 1,978 million euros. Number of employees: 18,860.[20]

2001: 200 million compressors have been produced[1] and the electronic starter device ePTC is introduced.[21]

2002: Foundation of the production facility Danfoss Compressors spol. s.r.o. in Zlaté Moravce, Slovakia.

2003: Introduction of compressors for solar appliances and CO2-compressors for the light commerial market that use carbon dioxide as refrigerant.

2006: The compressor production in Mexico was closed down.[22]

2008: 50 years of Danfoss Compressor GmbH in Flensburg. TOOL4COOL®, a software for the flexible control of refrigeration plants was launched. The production site in Wuqing, China was also founded in this year.[1]

On November 29., 2010, the acquisition by Aurelius AG becomes legally binding.[23]

Concrete developments preceding the acquisition

"The small black compressors for refrigerators have always had special status within the group. The compressors have always been characterised by large figures: high development costs, high production figures, high sales figures; a lot of money in and out of the cash register."[24] The money flowing out of the cash register had led to measures even before Danfoss Compressors was acquired by Aurelius. In reaction to the production making losses for years, the Danfoss board of directors in 2005 announced a reduction of the workforce by 700 employees in coming years. This meant a cut of jobs by half.

On May 27., 2009 Danfoss further declared they would close the production in Flensburg/Germany in the course of the following year. For the spring of 2010 they also planned to discharge another 450 employees in order to counteract the financial crisis. Chief Operations Officer Kim Fausing declared the business area "Household Compressors" incured losses into millions each week.[25] Regionally committed politicians appealed to reconsider the relocation of the production, thereby giving a positive signal for the German-Danish economic region. However, none of the talks that ensued could not change the decisions[26]

Note

The figures mentioned in context with job terminations refer to the job cuts that had been officially announced. The real number of layoffs can not really be tracked since it is the result of re-hiring, cancellations by employees, people starting retirement etc.

Present

Today the Flensburg headquarters houses the R&D-department for product- and technology development, the sales department and the product support.

The companies Aurelius and Danfoss didn't disclose the transaction's value. According to estimates in the media it was a small deal for Danfoss, one of the biggest Danish industrial companies with annual sales about 3.4 billions Euro and 26,000 employees worldwide (at the time of the transaction). For Aurelius, however, the acquisition was considered to be a huge growth (turnover in 2009: 760 millions Euro)[27]

According to Nis Storgaard, Chief Development Officer at Danfoss, the reason for the break-up was the decision to contentrate on other areas of the climate- and energy sector. The acquisition by Aurelius included all business in Germany, China, Slovenia and Slovakia with approximately 3,000 employees[28] In the course of the acquisition Danfoss Compressors was renamed and from then on conducted it's business under a new brand as Secop.

References

  1. ↑ 1.0 1.1 1.2 1.3 1.4 1.5 "Our history - from Danfoss Compressors to Secop in 60 years". Retrieved 7 March 2015.
  2. ↑ "SECOP - The new name for Danfoss Household Compressors". Retrieved 7 March 2015.
  3. ↑ "Joint Press Release Danfoss A/S and AURELIUS AG". Retrieved 7 March 2015.
  4. ↑ The Danfoss Story – Fragments of Danfoss history. Danfoss. p. 3. Retrieved 8 March 2015.
  5. ↑ The Danfoss Story – Fragments of Danfoss history. Danfoss. p. 6. Retrieved 8 March 2015.
  6. ↑ The Danfoss Story – Fragments of Danfoss history. Danfoss. p. 9. Retrieved 8 March 2015.
  7. ↑ 7.0 7.1 7.2 7.3 "Our history – The Danfoss Story". Retrieved 8 March 2015.
  8. ↑ The Danfoss Story – Fragments of Danfoss history. Danfoss. p. 69. Retrieved 8 March 2015.
  9. ↑ "The Danfoss Radiator Thermostat" (PDF). Retrieved 8 March 2015.
  10. ↑ The Danfoss Story – Fragments of Danfoss history. Danfoss. p. 19. Retrieved 8 March 2015.
  11. ↑ Danfoss Compressor Business – An Industrial Heritage. Danfoss and Secop. p. 10.
  12. ↑ The Danfoss Story – Fragments of Danfoss history. Danfoss. pp. 15–16. Retrieved 8 March 2015.
  13. ↑ "Secop – Our history". Retrieved 8 March 2015.
  14. ↑ Hellberg, Helge. Angekommen! – Aufgenommen? (PDF). Bundesministerium des Inneren. p. 3. Retrieved 8 March 2015.
  15. ↑ Danfoss Compressor Business – An Industrial Heritage. Danfoss and Secop. p. 96.
  16. ↑ "Danfoss Historisk Arkiv – Germany Timeline (1960s)". Retrieved 8 March 2015.
  17. ↑ "Danfoss Historisk Arkiv – Germany Timeline (1970s)". Retrieved 8 March 2015.
  18. ↑ 18.0 18.1 Danfoss Compressor Business – An Industrial Heritage. Danfoss and Secop. p. 110.
  19. ↑ "Secop partners with hydrocarbons21.com". Retrieved 8 March 2015.
  20. ↑ The Danfoss Story – Fragments of Danfoss history. Danfoss. p. 58. Retrieved 8 March 2015.
  21. ↑ Abid, Syed Muhammad Arslan. "Types of compressors". Retrieved 8 March 2015.
  22. ↑ Danfoss Compressor Business – An Industrial Heritage. Danfoss and Secop. p. 84.
  23. ↑ "Danfoss Historisk Arkiv – Germany Timeline (2010s)". Retrieved 8 March 2015.
  24. ↑ Global Danfoss Newsletter 4/2010. Danfoss. p. 25. Retrieved 8 March 2015.
  25. ↑ "Danfoss plant Werksschließung in Flensburg". Hamburger Abendblatt. Retrieved 8 March 2015.
  26. ↑ "Danfoss- Schließung - Appelle an Konzernleitung und Bundeswirtschaftsminister (in German)". CDU Schleswig-Holstein. Retrieved 8 March 2015.
  27. ↑ "Danfoss sells compressors unit to Aurelius". Reuters UK. Retrieved 8 March 2015.
  28. ↑ "Press Release: AURELIUS übernimmt Danfoss Household Compressors (in German)". Danfoss Deutschland. Retrieved 8 March 2015.

External links