Danfoss is a Danish multinational company, based in Denmark, with more than 28,000 employees globally. Danfoss was founded in 1933 by engineer Mads Clausen. , Denmark.
Company history
The beginning 1933 - 1966
In 1933 Mads Clausen 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 USA. In 1941 the activities are 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 1962 the company started production of power electronics, the first product was custom built rectifiers, later in 1968 production of the VLT Frequency converter began, the first of its kind in the world. The company also expands its activities into hydraulics, the first hydraulic component is produced on the factory in Nordborg in 1964. Mads Clausen dies in 1966, only 60 years old. The sons are still too young to take over the company, so Bitten Clausen takes on the role as head of the board. At that times the company had yearly sales of 500 million Danish kroner, and the factory had grown to 10.000 m2.
1966 to now
Expansion into other countries started in 1956, when the company started to build a factory in Flensburg in Germany. The factory was complete in 1958. China is also an important market for Danfoss. In 2013 two new factories were opened on the same day, bringing the number up to seven. At that time the Chinese market was the third biggest for the company.
Activities
The Danfoss Group manufactures products and provides services used in:
Danfoss employs approximately 28,000 people worldwide with its headquarters in Nordborg, Denmark. In 2002 Danfoss joined the United Nations Global Compact, 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
During WWII
In 2010 some Danish newspapers reported that Danfoss was selling their products to Nazi Germany during WWII. They quote the book Krigens købmænd by Christian Jensen, Tomas Kristiansen, and Karl Erik Nielsen, that states Danfoss sold goods to the occupuing forces for 408.850 Danish kroner. According to Ole Daugbjerg from Danfoss, they did not trade directly with the Germans.
Later in 2001, they have been cleared in the book Danfoss under besættelsen by Ditlev Tamm. But other critics have claimed the book might not be neutral because Tamm was paid by Danfoss to perform the investigations.
Cartel
On December 7, 2011, Danfoss was fined 90 million euros for exercising cartel cooperation with Embraco / Whirlpool Corporation, Panasonic, ACC and Tecumseh Products. The cartel cooperation was entered into within compressors during the period April 2004 to October 2007. The basis of this fine is that the cartel cooperation breaks with free competition and is therefore to the detriment of consumers. Danfoss has previously been fined 16.5 million Danish kroner in the United States. During the period October 2004 to 2007, Danfoss' German subsidiary also entered into illegal price agreements with competitors. The case in the European Commission and the US is related.
