Upgrade project strengthens automation, capacity, and service levels as the site marks its 25-year anniversary.
Today, Danfoss announces a significant investment in its Central Distribution Center (CDC) in Rødekro, Denmark, launching the CDC upgrade project. Coinciding with the site’s 25th anniversary, this milestone marks a strategic step toward enhancing Danfoss’ global competitiveness.
The CDC upgrade project represents a significant multi-million-euro capital investment aimed at enhancing the performance and scalability of the Rødekro distribution center. Through modernizing infrastructure, increasing automation, and optimizing processes, the project will ensure a competitive operation, enable future growth, and support the business in delivering improved customer service.
Competitiveness is increasingly defined by the ability to serve customers with speed, reliability, and efficiency, while continuously improving productivity and resilience. This investment strengthens Danfoss’ logistics capabilities, creating a more scalable and responsive setup that keeps the company close to customer needs and able to compete effectively in a fast-changing environment.
The upgrade coincides with the site’s 25th anniversary. Since its establishment, the Central Distribution Center in Rødekro has been a cornerstone of Danfoss’ supply chain—today handling around 50% of the volumes in the Danfoss Climate Solutions segment—and continues to play a key role in delivering reliable, high-quality service to customers worldwide.
“Celebrating 25 years in Rødekro is a testament to our strong track record and the dedication of our people”, said Dan Bruun, Vice President, Logistics Operations, Danfoss Climate Solutions. “Over the past 18 months, we have conducted an extensive operational benchmark, confirming that the site remains highly competitive in cost, service, and quality. This investment builds on that solid foundation—further enhancing our competitiveness and ensuring we continue to deliver high-quality, efficient, and flexible services to our customers for years to come”.
The investment underscores Danfoss’ long-term commitment to the Rødekro site, driving cost efficiency and operational excellence. It supports continuous improvements to working processes, creating better work environments for employees. At the same time, it enhances the CDC’s capacity to scale with rising global demand, ensuring reliable, high-quality service for customers worldwide.
Driving performance through automation and modernization
As part of the CDC upgrade project, several initiatives are being implemented to improve delivery performance and productivity across operations:
- Modernized logistics hardware: Existing conveyor systems are being upgraded and partly replaced with Autonomous Mobile Robots (AMRs) that transport and lift pallets. This introduces more flexible, future-ready technology while improving operational efficiency and reliability.
- Automated packaging processes: Manual carton closing and handling steps are being replaced with automated solutions, including robotic closing and optimized air usage in cartons. This ensures more consistent quality and significantly increases productivity.
- Robotic palletizing and consolidation: Today’s largely manual consolidation processes are being automated, with robots expected to handle 70–80% of palletizing activities. This improves throughput, reduces manual handling, and strengthens overall productivity.
The upgrade is expected to be completed by the end of 2028.