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Danfoss plans to shut down Flensburg compressor production |
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Friday, 12 June 2009 |
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 Over the course
of this year, Danfoss Household Compressors
plans to cease
domestic refrigeration compressor production at its factory in
Flensburg, Germany, in result of a dramatic decline in sales since
2008. As a result, it is expected that the manufacturing
will be relocated to sites outside of Germany, such as China and Slovakia, in order to take
advantage of the lower cost levels of those countries. The
move will affect about 450 employees.
“We regret that in spite of
the many steps taken we are not able to run a profitable business in Flensburg. The Household
Compressors business unit is suffering weekly, financial losses in the
millions. We simply cannot afford to proceed without taking drastic action, if
we want to avoid this unsustainable situation damaging the entire Group,” says
Kim Fausing, Executive Vice President and COO, Danfoss.
“In order to secure Danfoss’ compressor business, we will have to adapt our
cost level to the current situation. At the same time, it is imperative that we
work hard to launch new, energy-friendly and highly optimised compressor
products on the market. These innovative products will help us in the further
development of our business,” says Mogens Søholm, Senior Vice President of
Danfoss Household Compressors, assuring that the plans do not affect the
product and technology development functions, sales and some global support
functions at the Danfoss Household Compressors headquarters in Flensburg.
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