>	My Product List

Danfoss Continues Investment in North American Market Through Acquisitions and Joint Ventures

06 February 2007

BALTIMORE, MD — Danfoss, a global leader in supplying components, controls, compressors and systems for air-conditioning and refrigeration, has long prided itself on improving the quality of people’s lives by mastering advanced technologies in customer applications.

In recent years, Danfoss has embraced “EnVisioneering” in North America – an approach that expresses the company’s views on engineering innovation, energy efficiency and environmental responsibility, fostering sustainable business growth that creates strong customer partnerships. This approach is realized through a global production, sales and service network focused on refrigeration, air-conditioning, heating and water, and motion control.

It should come as no surprise, then, that since 2004 Danfoss has acquired three companies and formed a joint venture to help live out its EnVisioneering philosophy in the North American market:

In July 2004, Danfoss A/S and Montreal-based Turbocor Inc. announced the formation of a 50/50 joint venture. Today, that joint venture is known as Danfoss Turbocor Compressors, now headquartered in Tallahassee, FL.
In September 2006, Danfoss acquired Hago Manufacturing Co. Inc., which produces steel nozzles for large and small oil burners and for other industrial applications.
In September 2006, Danfoss completed the acquisition of Scroll Technologies, the Arkadelphia, AR, manufacturer of scroll compressors for heating, ventilating, air-conditioning and refrigeration applications.
And most recently, in December 2006, Danfoss acquired Conyers, GA-based Aztec Energy Partners, a U.S. market leader in providing energy management services to the food retail industry.

“Those business transactions are part of our global strategy to enhance our products and services in the North American market,” said John Galyen, president of Danfoss North America Refrigeration & Air-conditioning. “They are also excellent examples of EnVisioneering in action.”

Danfoss Turbocor Compressors provides the HVACR market with energy-efficient compressors that optimize operating costs, focusing on the heavy commercial and light commercial chiller markets. According to Henrik Joergensen, president of Danfoss Turbocor Compressors, the joint venture has enabled Danfoss to expand its commercial compressor product line to include high-efficiency, oil-free centrifugals, while Turbocor has tapped into Danfoss’ strong production and technical capabilities to enable further expansion into field installations.

Hago is now part of Danfoss Burner Components, which, in addition to oil nozzles, supplies other components and solutions for oil burners. With the acquisition of Hago, Danfoss is strengthening its position as the world’s leading supplier of oil nozzles.

“This acquisition should be seen in the light of Danfoss’ overall strategy to become a global leader within our business areas. Local production in the U.S. also provides us with new opportunities to serve customers in this important market. Nozzles are a central component not only in connection with the combustion of oil, but also in relation to industrial water and fire protection applications, for example. Consequently, it is important that we continuously develop our competencies within this area,” said Executive Vice President and COO at Danfoss, Niels B. Christiansen.

Danfoss produces brass oil nozzles, whereas Hago produces steel nozzles.

“We are now able to meet all customers’ requests, regardless of their individual preferences for either brass or steel nozzles. Our product range will clearly be the widest in the market, and this will definitely benefit both existing and new customers in the global marketplace,” said Henrik Henriksen, Senior Vice President, Danfoss Burner Components.

Meanwhile, in Arkadelphia, AR, the acquisition of Scroll Technologies is quickly positioning Danfoss as a leading, global manufacturer of high-quality compressors for commercial air-conditioning applications.

“Because the compressor is the ‘heart’ of an air-conditioning system, we have the opportunity to continue to advance air-conditioning technology for better energy efficiency and responsible use of refrigerants,” said Ricardo Schneider, vice president of global air-conditioning. “Applying our engineering resources toward these ends, in partnership with our customers, supports our concept of EnVisioneering, a positive future for our industry.”

The Arkadelphia plant produces compressors from 3.5 to 10 tons, using R-22, R-407C and R-410A refrigerants – suitable for commercial, light commercial and the upper range of residential air-conditioning applications. The Scroll Technologies compressor design has been awarded 120 patents.

“The addition of Scroll Technologies has enabled us to expand our range from 3.5 to 30 tons,” added Galyen. “We now have a full complement of compressors and controls.”

Aztec Energy Partners was a logical acquisition for Danfoss because the two companies have been collaborating since 2004 in the U.S. market, providing equipment and energy savings solutions to food retail customers.

Both Danfoss and Aztec Energy Partners have recognized the growing demand for energy management services – a market that’s expected to top $6 billion in 2007. Energy is a leading operating cost for supermarkets and other food retailers feeling the impact of rising energy prices. Therefore, those customers are seeking solutions to get more out of their energy management programs and systems.

“Aztec Energy is a respected and fast-growing provider of energy management services to food retailers in North America,” said James Boyle, vice president for Danfoss Food Retail. “Danfoss is already a leading player in the market for energy management controls, and Aztec Energy possesses the ability to sell energy management know-how and real savings to retailers. Based on that, we believe that this acquisition will make a substantial impact on the market in the coming years, and we’re excited about the opportunities the company brings to Danfoss.”

“Through organic growth and these recent acquisitions, Danfoss is really investing in the North American market in order to be better positioned to serve the growing needs of our customers,” commented Galyen.

>	Email: Lisa Tryson

>	Print Page