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Danfoss

Danfoss inaugurates major expansion of Monterrey, Mexico factory, investing to serve the growing American market

  • Thursday, November 6, 2025
  • The expansion more than doubles the production capacity of the Danfoss Monterrey facility
  • The increased capacity enables greater response to customer needs
  • The expansion of production will ensure increased sustainability, safety, breadth of the supplier and production network, and transparency in the supply chain

On November 5, 2025, Danfoss celebrated the opening of its expanded Monterrey, Mexico factory, a decision driven by increased demand for reliable, energy-efficient HVAC equipment in the North American and Latin American markets. The expansion is also an important part of Danfoss’ LEAP 2030 strategy, which aims to reduce delivery times and further strengthen supply chains for customers in all markets.

Local officials, including the mayor of Apodaca, Cesar Garza Arredondo, and Denmark’s Ambassador to Mexico, Kim Højlund Christensen, as well as valued customers and dedicated Danfoss employees, were present when Danfoss CEO Kim Fausing and Kristian Strand, head of Danfoss Climate Solutions, and the rest of Danfoss management celebrated the milestone with a ribbon-cutting ceremony at the factory.

The expansion of our Monterrey facility reflects our ambition as a part of our LEAP 2030 strategy to be our customers’ preferred technology partner and deliver close to their markets. This strategic investment brings us closer to customers in the U.S. and increases our capacity to quickly meet their needs.

Kristian Strand
Kristian Strand
President, Danfoss Climate Solutions

Strand added, “We have experienced strong double-digit growth in the US market this year and are determined to support our customers’ growth. With the investment in increased production in Mexico, we are in an even stronger position to help them achieve their sustainability goals and create even greater value through close collaboration and increased resilience in the supply chain.”

The LEED Silver-certified factory is built to accommodate future capacity needs. The expansion also includes an enlarged compressor laboratory, which has grown from 500 m² to 1,000 m².

The expansion coincides with the 30th anniversary of Danfoss production in Mexico and is the fourth expansion at the site since its establishment. Today, Monterrey serves as a central hub for Danfoss, with more than 1,400 employees.

Facts about Danfoss Mexico

  • Danfoss has six production sites in Mexico: Monterrey, Queretaro, and Reynosa – across the company’s three divisions
  • Total footprint 170,000 sq. meters
  • All factories in Mexico are strategically located to ensure geographic diversity and close proximity to the North American market
  • Danfoss has invested $100 million in Mexico over the past four years
  • The production expansions reflect the four distinct dimensions of resilience identified in U.S. Trade Policy for Supply Chain Resilience: sustainability, security, diversity, and transparency.
  • Total number of Danfoss employees in Mexico: 3,000