Danfoss history

From a single valve and an unquenchable desire to succeed, Danfoss founder, Mads Clausen, created a global business that still sets the standard for innovation today.

Born into a farming family in 1905 on the island of Als in Denmark, Mads Clausen ran the company for its first 30 years from his childhood bedroom. Danfoss' headquarters are still located right next door to the family farm which now houses the Danfoss Museum.

Milestones: Mads Clausen sets up his own company, "Dansk Køleautomatik og Apparatfabrik" in 1933.

Key innovations: First thermostatic expansion valves - water valves, thermostats, pressure switches, filter driers, and more.

Global Presence: First partnership established with distributor Itho-Schiedam in the Netherlands.

The team: 26 people employed by 1939.

Milestones: Exports exceed 30% in 1941 and the company is renamed Danfoss in 1946.

Key innovations: Radiator thermostat prototyped as one of the first in the world. Controls and nozzles for oil burners introduced. 

Global presence: In 1949, the first sales company set up in Argentina.

The team: By Danfoss' 10th anniversary, Danfoss employs 179 people.

Milestones: In its first year of production, Danfoss sells 5,000 Danfoss compressors - 10% of company sales turnover alone.

Key innovations: Thermostatic radiator valves go into series production. An early digital milestone is reached when Danfoss gets its own punch-card department.

Global Presence: Agents from 21 countries meet for the `Danfoss Convention 1950´ in Nordborg.

The team: 3,000 employees celebrate Danfoss' 25th anniversary in 1958.

Milestones: Mads Clausen dies in 1966, but his legacy lives on with 305 patent applications being filed between 1965 and 69. In 1961, Danfoss purchased the first EDP system and in 1969 installed the biggest computer in Danish industry. The 3,000,000th Compressor leaves the factory, and manufacturing of hydraulic components begins (licenses from Char-Lynn). Danfoss moved into its newly constructed headquarters in 1962. Until then, Mads Clausen had run a company with over 5,000 employees from his childhood room in an old farmhouse. Mass production of frequency converters began in 1968 with the VLT® 5.

The team: Mads Clausen’s widow, Bitten, becomes chair of the board and the first chairwoman in Denmark.

Milestones: A test field for hydraulics is established in Nordborg, and the company’s first electron-scanning microscope is put to use. The hydraulic motor ORT wins the 'IF 75' Design Award.

Key innovations: Oil pre-heaters are launched, and in 1974, VLT® frequency converters control the transfer lines at Audi. SONOFLO® ultrasonic flowmeters are introduced.

The team: By 1977, there were over 11,000 employees: 7,800 in Denmark and 3,400 around the world.

Milestones: Computer-aided design (CAD) was put into use in 1982, and in 1986 electronics represented 10% of sales. A wastewater neutralization plant in Nordborg opens in 1985; later, Danfoss wins the `Excellent Environment Administration´ award. In 1989, Danfoss produced 100 million compressors.

Key innovations: The ECT weather compensation control panel and ADAP-KOOL® control system are introduced.

The team: In 1986, Danfoss had 13,285 employees, including 9,275 in Denmark.

Milestones: Danish factories achieve ISO 9001 quality certification and Danfoss signs ICC’s international declaration of sustainable development. More than 1,000 PCs were installed in 1990. Danfoss acquired Maneurop Compressors in 1993. Factories were established in Russia (1993) and China (1996). In 1995, the Danish Environment Minister awarded Danfoss with the EU Environmental prize, in the ‘Green Products’ category. In 1997, ‘The Green Diploma’ is given to the Transmission Division in Gråsten, Denmark, which is certified according to the British standard BS 7750.

Key innovations: Nessie® Water Hydraulics, called `The Innovation of the Century'. EVITA® Oxygen Meters are launched.

The team: In 1996, Jørgen Mads Clausen, Mads Clausen’s son, became the President of Danfoss. By 1999, Danfoss employed almost 19,000 people.

Milestones: Danfoss Fluid Power A/S merges with Sauer Inc. to become Sauer-Danfoss Inc. Production starts in India and Brazil. Danfoss joins the UN Global Compact. Danfoss acquires several heating technology companies, including DEVI, Thermia and LPM. A survey puts Danfoss among the world’s most ethical companies.

The team: By 2008, Danfoss had almost 32,000 employees.

Milestones: Danfoss and Sauer-Danfoss come out of the global financial crisis stronger than ever. AURELIUS AG buys Danfoss Household Compressors. In 2013, Danfoss Turbocor® Compressors and Sauer-Danfoss became 100% owned by Danfoss.

This is truly a decade where Danfoss invests to get ahead.

Looking to further strengthen the core business, Danfoss acquires Vacon®, Sondex®, White Drive products, Artemis Intelligent Power Ltd, Hydraulik Nord Fluidtechnik, and AAIM controls.

Digitalization is increasingly important for Danfoss solutions, as acquiring Leanheat, Kavlico, OE3i ApS, Prosa, and IKUSI Velatia underlines the focus on creating sustainable digital solutions.

To build on its leading position in electrification, Danfoss acquires Visedo, UQM Technologies, and Axco Motors. Stepping up the partnership with ZF Friedrichshafen AG to further improve the efficiency of electric drivelines.

Key innovations: In 2012, Danfoss was the first to integrate variable speed technology in commercial air-conditioning. Danfoss Link™ smart heating is introduced. In 2014 alone, 213 new patents were granted. In 2019, Danfoss established an IoT collaboration with Microsoft to bring domain expertise in Refrigeration and HVAC to the cloud.

The team: Sales turnover doubles from 2006-2016, with a 22% increase in employees.

Milestones: In February 2020, Danfoss set an ambitious target to become carbon-neutral in all the company’s global operations by 2030 based on science-based targets. At the same time, it was announced that Danfoss aims to reach 30% women in leadership positions by 2025.

As of January 2021, the Cooling and Heating segment joined forces into one strong segment: Danfoss Climate Solutions.

Danfoss completes the acquisition of Eaton Hydraulics in August 2021, increasing the size of Danfoss Group by 30% to a revenue of more than EUR 7bn. With the acquisition, Danfoss Power Solutions becomes a global leader in mobile and industrial hydraulics.

In April 2022, Danfoss launched its Core & Clear 2025 strategy to continue its green growth transformation. Driven by its lifelong purpose of engineering tomorrow to build a better future, Danfoss set priorities within ESG to become the preferred partner in helping customers to decarbonize.

In August 2022, SEMIKRON and Danfoss Silicon Power join forces in a new business called Semikron Danfoss to establish the ultimate partner in power electronics. With an existing workforce of more than 3,500 dedicated power electronic specialists, Semikron Danfoss provides world-class technology expertise to its loyal customer base. The merger comes with a strong growth plan and a firm commitment to future investments, paving the way for green growth and a more sustainable, energy-efficient, and decarbonized future.

In 2022, Danfoss' largest production facility in Nordborg, Denmark, became carbon neutral.

In March 2023, Danfoss completed the acquisition of BOCK GmbH, a world leader in CO2 and low-GWP compressors utilized in cooling and heating applications. The completion of the acquisition reinforces Danfoss’ position as a preferred provider of greener cooling and heating solutions.

On September 1st, 2023, Danfoss celebrates its 90-year anniversary as a company that is stronger than ever and ready for the future.

Key innovations: With bold investments, Danfoss continues to improve its offering of best-in-class technology and solutions to drive the green transition through energy efficiency, machine productivity, lower emissions, and electrification.

At China Ref 2023, Danfoss received the CRH innovation product award for its newest electronic expansion valve ETS8M, designed for heat pumps, chillers, and rooftop units.

The team: 2022 sales turnover reached EUR 10.3bn, driven by 42,000 highly engaged employees.