Danfoss Compressors GmbH was a

subsidiary A subsidiary, subsidiary company, or daughter company is a company (law), company completely or partially owned or controlled by another company, called the parent company or holding company, which has legal and financial control over the subsidia ...

of the Danfoss Group, a Danish manufacturer of valves and fluid-handling products, from 1956 to 2010. It produced hermetic compressors for

household appliances A home appliance, also referred to as a domestic appliance, an electric appliance or a household appliance, is a machine which assists in household functions such as cooking, cleaning and food preservation. The domestic application attached to ...

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

Munich Munich is the capital and most populous city of Bavaria, Germany. As of 30 November 2024, its population was 1,604,384, making it the third-largest city in Germany after Berlin and Hamburg. Munich is the largest city in Germany that is no ...

-based industrial

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

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 Invention, invent, design, build, maintain and test machines, complex systems, structures, gadgets and materials. They aim to fulfill functional objectives and requirements while ...

specializing in

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 ...

and

refrigeration Refrigeration is any of various types of cooling of a space, substance, or system to lower and/or maintain its temperature below the ambient one (while the removed heat is ejected to a place of higher temperature).IIR International Dictionary of ...

, established the Danish Cooling Automatic and Appliance Factory in his boyhood attic room in Elsmark, on the Danish island of

Als Amyotrophic lateral sclerosis (ALS), also known as motor neuron disease (MND) or—in the United States—Lou Gehrig's disease (LGD), is a rare, terminal neurodegenerative disorder that results in the progressive loss of both upper and low ...

. 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 fittings, ...

for refrigeration plants, which previously had to be

import An importer is the receiving country in an export from the sending country. Importation and exportation are the defining financial transactions of international trade. Import is part of the International Trade which involves buying and receivin ...

ed from the

United States The United States of America (USA), also known as the United States (U.S.) or America, is a country primarily located in North America. It is a federal republic of 50 U.S. state, states and a federal capital district, Washington, D.C. The 48 ...

. 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; it has symbol Zn and atomic number 30. It 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 periodic tabl ...

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 (), is a town with a population of 5,680 (1 January 2025),thermostat A thermostat is a regulating device component which senses the temperature of a physical system and performs actions so that the system's temperature is maintained near a desired setpoint. Thermostats are used in any device or system tha ...

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, a flexible diaphragm, and a "weir or saddle" or seat upon which the diaphragm closes the valve. The valve body may be constructed from plastic, metal or other ...

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 that it represents, as in ...

reading "Danfoss"—a

portmanteau In linguistics, a blend—also known as a blend word, lexical blend, or portmanteau—is a word formed by combining the meanings, and parts of the sounds, of two or more words together.

of the Danish words "Danmark" (Denmark) and "fosser" (to stream or sparkle)—was attached to all valves. The company's valves, especially the

thermostatic Thermostatic is a Swedish electronic band, formed in Gothenburg in 2003. Their music can be said to fall within the genre categories of bitpop and synthpop, with the band inspired by the "video games and computer era of the eighties." History ...

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 wer ...

, 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 ( ) is the capital and most populous city of Denmark, with a population of 1.4 million in the Urban area of Copenhagen, urban area. The city is situated on the islands of Zealand and Amager, separated from Malmö, Sweden, by the ...

with 261 employees.

Compressor production

After the

Second World War 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 ...

, 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

refrigerator A refrigerator, commonly shortened to fridge, is a commercial and home appliance consisting of a thermal insulation, thermally insulated compartment and a heat pump (mechanical, electronic or chemical) that transfers heat from its inside to ...

s. 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 Provinces and territories of Canada, ten provinces and three territories extend from the Atlantic Ocean to the Pacific Ocean and northward into the Arctic Ocean, making it the world's List of coun ...

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 of ...

. 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 north-west coast of continental Europe, consisting of the countries England, Scotland, and Wales. With an area of , it is the largest of the British Isles, the List of European ...

and

Ireland Ireland (, ; ; Ulster Scots dialect, Ulster-Scots: ) is an island in the North Atlantic Ocean, in Northwestern Europe. Geopolitically, the island is divided between the Republic of Ireland (officially Names of the Irish state, named Irelan ...

. 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 continent located entirely in the Northern Hemisphere and mostly in the Eastern Hemisphere. It is bordered by the Arctic Ocean to the north, the Atlantic Ocean to the west, the Mediterranean Sea to the south, and Asia to the east ...

. 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 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 ...

, in northern

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 ...

, and the

limited company In a limited company, the Legal liability, 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 Share (finance), shares or by guarantee. In a c ...

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 Siemens AG ( ) is a German multinational technology conglomerate. It is focused on industrial automation, building automation, rail transport and health technology. Siemens is the largest engineering company in Europe, and holds the positi ...

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 A company, abbreviated as co., is a legal entity representing an association of legal people, whether natural, juridical or a mixture of both, with a specific objective. Company members share a common purpose and unite to achieve specific ...

. Mads Clausen assumes the chairmanship of the

board Board or Boards may refer to: Flat surface * Lumber, or other rigid material, milled or sawn flat ** Plank (wood) ** Cutting board ** Sounding board, of a musical instrument * Cardboard (paper product) * Paperboard * Fiberboard ** Hardboard, a ...

. 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, Klea 134a, Freon 134a, Forane 134a, Genetron 134a, Green Gas, Florasol 134a, Suva 134a, HFA-134a, or HFC-134a) is a hydrofluorocarbon (HFC) and haloalkane refrigerant with therm ...

refrigerant A refrigerant is a working fluid used in the cooling, heating, or reverse cooling/heating cycles of air conditioning systems and heat pumps, where they undergo a repeated phase transition from a liquid to a gas and back again. Refrigerants are ...

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

vending machines A vending machine is an automated machine that dispenses 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 payment is otherwise m ...

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

heat pump A heat pump is a device that uses electricity to transfer heat from a colder place to a warmer place. Specifically, the heat pump transfers thermal energy using a heat pump and refrigeration cycle, cooling the cool space and warming the warm s ...

s and dehumidifiers. 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 power Direct current (DC) is one-directional flow of electric charge. An electrochemical cell is a prime example of DC power. Direct current may flow through a conductor such as a wire, but can also flow through semiconductors, insulators, or even t ...

ed compressors for use in mobile cooling devices. 1985: Revenue reaches 5 billion kroner (150 million US$ or 125 million

euro The euro (currency symbol, symbol: euro sign, €; ISO 4217, currency code: EUR) is the official currency of 20 of the Member state of the European Union, member states of the European Union. This group of states is officially known as the ...

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 Isobutane, also known as ''i''-butane, 2-methylpropane or methylpropane, is a chemical compound with molecular formula HC(CH3)3. It is an isomer of butane. Isobutane is a colorless, odorless gas. It is the simplest alkane with a tertiary carbon a ...

as a refrigerant, replacing R134a. It also builds a new production facility for compressors in

Črnomelj Črnomelj (; in older sources also ''Černomelj'', ''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 Slovenia. It is the ...

Slovenia Slovenia, officially the Republic of Slovenia, is a country in Central Europe. It borders Italy to the west, Austria to the north, Hungary to the northeast, Croatia to the south and southeast, and a short (46.6 km) coastline within the Adriati ...

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

Mexico Mexico, officially the United Mexican States, is a country in North America. It is the northernmost country in Latin America, and borders the United States to the north, and Guatemala and Belize to the southeast; while having maritime boundar ...

. 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 Propane () is a three-carbon chain alkane with the molecular formula . It is a gas at standard temperature and pressure, but becomes liquid when compressed for transportation and storage. A by-product of natural gas processing and petroleum ref ...

-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, , ) 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 Bratislava and 32 km from Nitra. ...

Slovakia Slovakia, officially the Slovak Republic, 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 west, and the Czech Republic to the northwest. Slovakia's m ...

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

carbon dioxide Carbon dioxide is a chemical compound with the chemical formula . It is made up of molecules that each have one carbon atom covalent bond, covalently double bonded to two oxygen atoms. It is found in a gas state at room temperature and at norma ...

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

software Software consists of computer programs that instruct the Execution (computing), execution of a computer. Software also includes design documents and specifications. The history of software is closely tied to the development of digital comput ...

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 China, officially the People's Republic of China (PRC), is a country in East Asia. With population of China, a population exceeding 1.4 billion, it is the list of countries by population (United Nations), second-most populous country after ...

. 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

2008 financial crisis The 2008 financial crisis, also known as the global financial crisis (GFC), was a major worldwide financial crisis centered in the United States. The causes of the 2008 crisis included excessive speculation on housing values by both homeowners ...

. The company's

chief operations officer A chief operating officer (COO), also called chief operations officer, is an executive in charge of the daily operations of an organization (i.e. personnel, resources, and logistics). COOs are usually second-in-command immediately after the CEO, ...

, 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 Research and development (R&D or R+D), known in some countries as OKB, experiment and design, is the set of innovative activities undertaken by corporations or governments in developing new services or products. R&D constitutes the first stage ...

, sales, and

product support Product may refer to: Business * Product (business), an item that can be offered to a market to satisfy the desire or need of a customer. * Product (project management), a deliverable or set of deliverables that contribute to a business solution ...

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 ha ...

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 refrigerat ...

. 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, archive-url=https://web.archive.org/web/20160306152013/http://uk.reuters.com/article/danfoss-aurelius-idUKLDE66B0TZ20100712, url-status=dead, archive-date=March 6, 2016, 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