Danfoss is a Danish multinational company, based in

Denmark Denmark is a Nordic countries, Nordic country in Northern Europe. It is the metropole and most populous constituent of the Kingdom of Denmark,, . also known as the Danish Realm, a constitutionally unitary state that includes the Autonomous a ...

, with more than 41,928 employees globally. Danfoss was founded in 1933 by engineer Mads Clausen.

History

Beginning (1933–1966)

In 1933 Mads Clausen (1905–1966) founded ''Dansk Køleautomatik- og Apparatfabrik'', later in 1946 the company name was changed to ''Danfoss''. The first product was an expansion valve for refrigeration units, it was developed after studying imported valves from the US. In 1941, activities expanded to products for heating. The thermostatic radiator valve was invented by Mads Clausen in 1943, later patented, and in 1952 promoted as an energy saving device. In 1945 about 224 people were employed at the first factory built at and around the farm where he grew up. There was no more room for expansion and a new larger factory was planned. In 1962 the company started production of power electronics, the first product was custom-built

rectifier A rectifier is an electrical device that converts alternating current (AC), which periodically reverses direction, to direct current (DC), which flows in only one direction. The process is known as ''rectification'', since it "straightens" t ...

s, later in 1968 production of the VLT Frequency converter began, the first of its kind in the world.
The company also expanded its activities into

hydraulics Hydraulics () is a technology and applied science using engineering, chemistry, and other sciences involving the mechanical properties and use of liquids. At a very basic level, hydraulics is the liquid counterpart of pneumatics, which concer ...

, the first hydraulic component was produced in the factory in Nordborg in 1964. Mads Clausen died in 1966, at 60. Because his sons were too young to run the company, his widow Bitten Clausen took on the role as head of the board. The company had yearly sales of 500 million

Danish kroner The krone (; plural: ''kroner''; currency sign, sign: kr.; ISO 4217, code: DKK) is the official currency of Denmark, Greenland, and the Faroe Islands, introduced on 1 January 1875. Both the ISO code "DKK" and currency sign "kr." are in common ...

, and the factory had grown to 10,000 m². Mads Clausen kontor

Since 1966

Expansion into other countries started in 1956, when the company started to build a factory in

Flensburg Flensburg (; Danish language, Danish and ; ; ) is an independent city, independent town in the far north of the Germany, German state of Schleswig-Holstein. After Kiel and Lübeck, it is the third-largest city in Schleswig-Holstein. Flensburg's ...

Germany Germany, officially the Federal Republic of Germany, is a country in Central Europe. It lies between the Baltic Sea and the North Sea to the north and the Alps to the south. Its sixteen States of Germany, constituent states have a total popu ...

, which was completed in 1958. Danfoss Compressors GmbH, Danfoss' former domestic compressor division, was sold in 2010 and renamed Secop. China is also an important market for Danfoss. In 2013, two new factories were opened on the same day, bringing the number to seven. The Chinese market was the third largest for the company. In 2014, Danfoss purchased Vacon, a VFD manufacturer.

Activities

''The Danfoss Group'' manufactures products and provides services used in: * cooling food *

air conditioning Air conditioning, often abbreviated as A/C (US) or air con (UK), is the process of removing heat from an enclosed space to achieve a more comfortable interior temperature, and in some cases, also controlling the humidity of internal air. Air c ...

* heating buildings *

variable-frequency drive A variable-frequency drive (VFD, or adjustable-frequency drive, adjustable-speed drive, variable-speed drive, AC drive, micro drive, inverter drive, variable voltage variable frequency drive, or drive) is a type of AC motor, AC motor drive (sys ...

s *

gas compressor A compressor is a mechanical device that increases the pressure of a gas by reducing its volume. An air compressor is a specific type of gas compressor. Many compressors can be staged, that is, the gas is compressed several times in steps or ...

s * powering mobile machinery. Danfoss employs approximately 41,928 people worldwide with its headquarters in Nordborg,

.
In 2002 Danfoss joined the

United Nations Global Compact The United Nations Global Compact is a non-binding United Nations pact to get businesses and firms worldwide to adopt sustainable and socially responsible policies, and to report on their implementation. The UN Global Compact is the world's ...

, consisting of nine principles with social and environmental responsibility. ''Bitten og Mads Clausens Fond'' was established as a self-governing institution in 1971 by Bitten Clausen. Today, the foundation is the biggest shareholder in the company.

Controversy

World War II

In 2010, some Danish newspapers reported that Danfoss sold its products to

during

World War II World War II or the Second World War (1 September 1939 – 2 September 1945) was a World war, global conflict between two coalitions: the Allies of World War II, Allies and the Axis powers. World War II by country, Nearly all of the wo ...

. They quoted the book ''Krigens købmænd'' ("Merchants of War") by Christian Jensen, Tomas Kristiansen and Karl Erik Nielsen, who stated that Danfoss sold goods to the occupying forces for 408,850 Danish kroner. According to Ole Daugbjerg from Danfoss, they did not trade directly with the Germans. Later in 2001, it was cleared in the book ''Danfoss under besættelsen'' ("Danfoss during the Occupation") by Ditlev Tamm although other critics have claimed the book might not be neutral because Tamm was paid by Danfoss to perform the investigations.

Cartel

On 7 December 2011 Danfoss was fined 90 million euro for exercising a

cartel A cartel is a group of independent market participants who collaborate with each other as well as agreeing not to compete with each other in order to improve their profits and dominate the market. A cartel is an organization formed by producers ...

with Embraco / Whirlpool Corporation,

Panasonic is a Japanese multinational electronics manufacturer, headquartered in Kadoma, Osaka, Kadoma, Japan. It was founded in 1918 as in Fukushima-ku, Osaka, Fukushima by Kōnosuke Matsushita. The company was incorporated in 1935 and renamed and c ...

, ACC and Tecumseh Products. The cooperation was entered with compressors from April 2004 to October 2007. The basis of the fine is the violation of free competition to the detriment of consumers. Danfoss was fined 16.5 million Danish kroner in the United States. From October 2004 to 2007, the German subsidiary also entered illegal price agreements with competitors. The case in both the

European Commission The European Commission (EC) is the primary Executive (government), executive arm of the European Union (EU). It operates as a cabinet government, with a number of European Commissioner, members of the Commission (directorial system, informall ...

and the US is related.

References

*https://www.danfoss.com/en/about-danfoss/company/financials/year-in-review/

External links

Danfoss Group website
{{Authority control Pump manufacturers Manufacturing companies of Denmark Companies based in Sønderborg Municipality Manufacturing companies established in 1933 Danish brands Multinational companies headquartered in Denmark Danish companies established in 1933