Danfoss Compressors GmbH was a subsidiary of the Danfoss Group, a

Danish Danish may refer to: * Something of, from, or related to the country of Denmark People * A national or citizen of Denmark, also called a "Dane," see Demographics of Denmark * Culture of Denmark * Danish people or Danes, people with a Danish a ...

manufacturer of valves and fluid-handling products, from 1956 to 2010. It produced hermetic compressors for

household appliances A major appliance, also known as a large domestic appliance or large electric appliance or simply a large appliance, large domestic, or large electric, is a non-portable or semi-portable machine used for routine housekeeping tasks such as cookin ...

and mobile cooling. In 2010, the Danfoss Group sold Danfoss Compressors GmbH to the

Munich Munich ( ; german: München ; bar, Minga ) is the capital and most populous city of the German state of Bavaria. With a population of 1,558,395 inhabitants as of 31 July 2020, it is the third-largest city in Germany, after Berlin and Ha ...

-based industrial

holding company A holding company is a company whose primary business is holding a controlling interest in the securities of other companies. A holding company usually does not produce goods or services itself. Its purpose is to own shares of other companies ...

Aurelius AG and established a new brand under the name Secop GmbH.

Founding

In 1933,

Mads Clausen Mads Clausen (21 October 1905 – 27 August 1966) born in Elsmark, parish of Havnbjerg, municipality of Nordborg in Denmark, was a Danish industrialist and founder of Danfoss in 1933. He died in transit from Elsmark to Sønderborg. He married ...

, an

engineer Engineers, as practitioners of engineering, are professionals who invent, design, analyze, build and test machines, complex systems, structures, gadgets and materials to fulfill functional objectives and requirements while considering the limit ...

specializing in

air conditioning Air conditioning, often abbreviated as A/C or AC, is the process of removing heat from an enclosed space to achieve a more comfortable interior environment (sometimes referred to as 'comfort cooling') and in some cases also strictly controlling ...

and

refrigeration The term refrigeration refers to the process of removing heat from an enclosed space or substance for the purpose of lowering the temperature.International Dictionary of Refrigeration, http://dictionary.iifiir.org/search.phpASHRAE Terminology, ht ...

, established the Danish Cooling Automatic and Appliance Factory in his boyhood attic room in Elsmark, on the Danish island of Als. He started producing automatic

valves A valve is a device or natural object that regulates, directs or controls the flow of a fluid (gases, liquids, fluidized solids, or slurries) by opening, closing, or partially obstructing various passageways. Valves are technically fitting ...

for refrigeration plants, which previously had to be imported from the

United States The United States of America (U.S.A. or USA), commonly known as the United States (U.S. or US) or America, is a country primarily located in North America. It consists of 50 states, a federal district, five major unincorporated territori ...

. Clausen's initial budget was small, and his equipment consisted of a manual

air pump An air pump is a pump for pushing air. Examples include a bicycle pump, pumps that are used to aerate an aquarium or a pond via an airstone; a gas compressor used to power a pneumatic tool, air horn or pipe organ; a bellows used to encoura ...

and a

zinc Zinc is a chemical element with the symbol Zn and atomic number 30. Zinc is a slightly brittle metal at room temperature and has a shiny-greyish appearance when oxidation is removed. It is the first element in group 12 (IIB) of the periodi ...

trough for testing the valves. The business would eventually become Danfoss A/S, the largest industrial group in Denmark. Its headquarters were also located in Elsmark, in the

Nordborg Nordborg (german: Norburg), is a town with a population of 5,709 (1 January 2022),thermostat products, including automatic spring valves, ball float valves, pressure-controlled valves,

diaphragm valve Diaphragm valves (or membrane valves) consists of a valve body with two or more ports, an elastomeric diaphragm, and a "weir or saddle" or seat upon which the diaphragm closes the valve. The valve body may be constructed from plastic, metal, woo ...

s, suction valves, constant-pressure valves, room thermostats and drying filters. A

logo A logo (abbreviation of logotype; ) is a graphic mark, emblem, or symbol used to aid and promote public identification and recognition. It may be of an abstract or figurative design or include the text of the name it represents as in a wo ...

reading "Danfoss"—a

portmanteau A portmanteau word, or portmanteau (, ) is a blend of wordsDanish Danish may refer to: * Something of, from, or related to the country of Denmark People * A national or citizen of Denmark, also called a "Dane," see Demographics of Denmark * Culture of Denmark * Danish people or Danes, people with a Danish a ...

words "Danmark" (Denmark) and "fosser" (to stream or sparkle)—was attached to all valves. The company's valves, especially the thermostatic ones that Clausen developed, became its best-known products. Its energy-saving thermostats were not a major success until the

energy crisis of the 1970s The 1970s energy crisis occurred when the Western world, particularly the United States, Canada, Western Europe, Australia, and New Zealand, faced substantial petroleum shortages as well as elevated prices. The two worst crises of this period we ...

, when new legislation made the use of thermostat valves obligatory. In 1946, the word from the logo became the official company name, and Danfoss opened an office in

Copenhagen Copenhagen ( or .; da, København ) is the capital and most populous city of Denmark, with a proper population of around 815.000 in the last quarter of 2022; and some 1.370,000 in the urban area; and the wider Copenhagen metropolitan ar ...

with 261 employees.

Compressor production

After the

Second World War World War II or the Second World War, often abbreviated as WWII or WW2, was a world war that lasted from 1939 to 1945. It involved the vast majority of the world's countries—including all of the great powers—forming two opposi ...

, the development of affordable individual cooling technologies threatened 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 set up production lines for hermetic compressors. Clausen decided to do the same. During a trip to the

and

Canada Canada is a country in North America. Its ten provinces and three territories extend from the Atlantic Ocean to the Pacific Ocean and northward into the Arctic Ocean, covering over , making it the world's second-largest country by tot ...

in the fall of 1950, Clausen visited several manufacturers of hermetic compressors and gathered information, not only about technical specifications, but also about organisational details, compensation and output optimisation. On January 1, 1952, he entered a licensing agreement with

Tecumseh Products Tecumseh Products Company is an American manufacturer of hermetic compressors for air conditioning and refrigeration products. Tecumseh Products Company has subsidiaries that sell externally and internally to Tecumseh. The Tecumseh corporate off ...

. The agreement allowed Danfoss to manufacture hermetic compressors and sell them in any country except for the US, Canada,

Great Britain Great Britain is an island in the North Atlantic Ocean off the northwest coast of continental Europe. With an area of , it is the largest of the British Isles, the largest European island and the ninth-largest island in the world. It i ...

and

Ireland Ireland ( ; ga, Éire ; Ulster Scots dialect, Ulster-Scots: ) is an island in the Atlantic Ocean, North Atlantic Ocean, in Northwestern Europe, north-western Europe. It is separated from Great Britain to its east by the North Channel (Grea ...

. The production in Nordborg started in 1951. The first compressor, P 101, was nicknamed "Pancake" because of its flat appearance. It influenced the development of refrigerators as household appliances in

Europe Europe is a large peninsula conventionally considered a continent in its own right because of its great physical size and the weight of its history and traditions. Europe is also considered a subcontinent of Eurasia and it is located entirel ...

. In 1952, Danfoss sold 5,000 Pancake compressors, which accounted for 10% of the company's production. Over the years, the compressor business made up 25 to 35% of the Danfoss Group's sales.

History

1956: Danfoss relocates its compressor production to Flensburg, in northern

Germany Germany,, officially the Federal Republic of Germany, is a country in Central Europe. It is the second most populous country in Europe after Russia, and the most populous member state of the European Union. Germany is situated betwe ...

, and the

limited company In a limited company, the liability of members or subscribers of the company is limited to what they have invested or guaranteed to the company. Limited companies may be limited by shares or by guarantee. In a company limited by shares, the lia ...

Danfoss Compressors GmbH is established. 1958: Production of hermetic compressors begins. Danfoss distributes its first PW compressors, which begin to replace the Pancake type. Productivity increases from 1,000 compressors per week at the beginning of the year to 1,750 per week at the end. 1959: The Danfoss plant begins operating on two shifts, producing 8,000 units per week. Its biggest customers are Bauknecht, Siemens and Bosch, manufacturers of household refrigerators. 1960: The company begins using synthetic materials and oils for greater stability in low as well as high temperatures. 1961: Danfoss becomes an incorporated company. Mads Clausen assumes the chairmanship of the board. 1966: Clausen dies on August 27. His wife, Bitten, takes over the chairmanship, and Andreas Jepsen becomes managing director. 1968: The number of Danfoss employees in Flensburg reaches 1,372. 1970: The company's second plant—whose foundation stone was laid in the mid-1960s, when demand for household compressors rose sharply—is completed. The number of employees surpasses 2,000. A new compressor line and the PTC starter for light commercial appliances are introduced. 1972: Annual revenue rises to 1 billion kroner. The company introduces the FR compressor line using the

R134a 1,1,1,2-Tetrafluoroethane (also known as norflurane (INN), R-134a, Freon 134a, Forane 134a, Genetron 134a, Green Gas, Florasol 134a, Suva 134a, or HFC-134a) is a hydrofluorocarbon (HFC) and haloalkane refrigerant with thermodynamic properties si ...

refrigerant. The compressor is designed for smaller appliances like beverage coolers, water dispensers,

vending machines A vending machine is an automated machine that provides items such as snacks, beverages, cigarettes, and lottery tickets to consumers after cash, a credit card, or other forms of payment are inserted into the machine or otherwise made. The fir ...

, cooling cabinets and ice-making machines, as well as

heat pump A heat pump is a device that can heat a building (or part of a building) by transferring thermal energy from the outside using a refrigeration cycle. Many heat pumps can also operate in the opposite direction, cooling the building by removing ...

s and

dehumidifiers A dehumidifier is an air conditioning device which reduces and maintains the level of humidity in the air. This is done usually for health or thermal comfort reasons, or to eliminate musty odor and to prevent the growth of mildew by extracting wa ...

. 1974: Production of the TL compressor starts, and more than one million units are sold in 18 months. As of 2008, more than 100 million TL devices were in use in refrigerators worldwide. 1977: Danfoss builds its 50 millionth compressor and introduces DC powered compressors for use in mobile cooling devices. 1985: Revenue reaches 5 billion kroner (150 million US$ or 125 million

euro The euro ( symbol: €; code: EUR) is the official currency of 19 out of the member states of the European Union (EU). This group of states is known as the eurozone or, officially, the euro area, and includes about 340 million citizens . ...

s). 1988: Production and sales are centralised in Flensburg. Danfoss Compressors takes over the production of condensing units from the Danfoss plant in Offenbach, which would be shut down in 1993. Revenue reaches 6.3 billion kroner (1 billion US$ or 846 million euros). 1989: The company delivers its 100 millionth compressor. 1993: Danfoss begins using isobutane as a refrigerant, replacing R134a. It also builds a new production facility for compressors in

Črnomelj Črnomelj (; in older sources also ''Černomelj'', german: Tschernembl''Leksikon občin kraljestev in dežel zastopanih v državnem zboru,'' vol. 6: ''Kranjsko''. 1906. Vienna: C. Kr. Dvorna in Državna Tiskarna, p. 4.) is a town in southeastern S ...

Slovenia Slovenia ( ; sl, Slovenija ), officially the Republic of Slovenia (Slovene: , abbr.: ''RS''), is a country in Central Europe. It is bordered by Italy to the west, Austria to the north, Hungary to the northeast, Croatia to the southeast, an ...

. 1995: Danfoss Compressors S.A. de C.V. begins production in

Mexico Mexico (Spanish: México), officially the United Mexican States, is a country in the southern portion of North America. It is bordered to the north by the United States; to the south and west by the Pacific Ocean; to the southeast by Guatema ...

. 1997: The company produces its 150 millionth compressor. Revenue reaches 13.1 billion kroner (2.09 billion US$ or 1.75 billion euros). 1999: Danfoss begins using R290, a propane-based refrigerant. Sales total 1.978 million euros for the year. The number of employees reaches 18,860. 2001: 200 million compressors have been produced, and the electronic starter device ePTC is introduced. 2002: Danfoss Compressors spol. s.r.o. begins production in

Zlaté Moravce Zlaté Moravce (; 1776 Morawce, hu, Aranyosmarót, german: Goldmorawitz) is a town in south-western Slovakia. Basic data It is the capital and the biggest town of Zlaté Moravce District. It is approximately 120 km from the Slovak capital ...

Slovakia Slovakia (; sk, Slovensko ), officially the Slovak Republic ( sk, Slovenská republika, links=no ), is a landlocked country in Central Europe. It is bordered by Poland to the north, Ukraine to the east, Hungary to the south, Austria to the s ...

. 2003: The company introduces compressors for solar appliances and others that use

carbon dioxide Carbon dioxide ( chemical formula ) is a chemical compound made up of molecules that each have one carbon atom covalently double bonded to two oxygen atoms. It is found in the gas state at room temperature. In the air, carbon dioxide is trans ...

as a refrigerant. 2006: Compressor production in Mexico is halted. 2008: TOOL4COOL®,

software Software is a set of computer programs and associated software documentation, documentation and data (computing), data. This is in contrast to Computer hardware, hardware, from which the system is built and which actually performs the work. ...

for the flexible control of refrigeration plants, is introduced, and a production site opens in

Wuqing Wuqing District () is a district of Tianjin, bordering Hebei province to the north and west, Beijing Municipality to the northwest, Baodi District to the northeast, and Beichen District and Xiqing District to the southeast/south. Administrative d ...

, China. 2010: On November 29, the company's acquisition by Aurelius AG becomes legally binding.

Decline and acquisition

In 2005, after years of financial losses, the board of directors announced that Danfoss would lay off 700 employees. On May 27, 2009, Danfoss announced that it would cease production in Flensburg within a year and lay off another 450 employees in response to the recent

financial crisis A financial crisis is any of a broad variety of situations in which some financial assets suddenly lose a large part of their nominal value. In the 19th and early 20th centuries, many financial crises were associated with banking panics, and man ...

. The company's

chief operations officer A chief operating officer or chief operations officer, also called a COO, is one of the highest-ranking executive positions in an organization, composing part of the " C-suite". The COO is usually the second-in-command at the firm, especially if t ...

, Kim Fausing, reported that its household compressors business was incurring millions in losses. Politicians appealed to Danfoss executives to reconsider, saying that keeping the production plant in Flensburg would give a positive signal for the German-Danish economic region, but the company went forward with the closing. The Flensburg headquarters continued to house the company's research and development, sales, and product support departments. Aurelius AG acquired Danfoss Compressors in 2010. According to Nis Storgaard,

chief development officer A chief business development officer (CBDO) is a position within a company established beside the other executive positions reporting to CEO and COO. The title is used to define a high-ranking position alongside the CEO. The CBDO is expected to hav ...

of the Danfoss Group, the reason for the sale was the parent company's decision to concentrate on other areas of the climate and energy sector. The acquisition included all business in Germany, China, Slovenia and Slovakia, with approximately 3,000 employees. In the course of the acquisition, Danfoss Compressors was renamed

Secop Secop GmbH (formerly known as '' Danfoss Compressors GmbH'') is a manufacturer of hermetic compressors for cooling circuits. Secop designs, develops, manufactures and distributes compressors for two application ranges: light commercial refrige ...

. Aurelius and Danfoss did not disclose the value of the acquisition. According to estimates in the media, it was a small deal for Danfoss, which had 26,000 employees worldwide and annual sales of about 3.4 billion euros at the time. For Aurelius, however, with revenue of 760 million euros in 2009, it was a major expansion.{{cite web, title=Danfoss sells compressors unit to Aurelius, url=http://uk.reuters.com/article/danfoss-aurelius-idUKLDE66B0TZ20100712, website=Reuters UK, accessdate=8 March 2015

References

External links

Website of the Danfoss Group

Website of Secop GmbH

Website of AURELIUS AG
Manufacturing companies of Germany Companies based in Schleswig-Holstein