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Motion controls business is renamed in shake-up

09 April, 2010

Danfoss’ Motion Controls Division has been renamed Danfoss Power Electronics as part of a reorganisation aimed at making the Danish group more competitive. Danfoss Power Electronics is one of five new divisions covering core areas – such as heating and refrigeration controls – in which Danfoss plays a leading role and where it estimates there is enough growth potential to ensure an annual growth rate of 5–10% in both the short and the longer term.

The new Danfoss Power Electronics division contains three business units: Danfoss VLT Drives; Danfoss Customised Power Electronics; and Danfoss Inverters for Solar and Wind. The division is headed by Troels Petersen, with Ole Møller-Jensen running the VLT Drives business.

Last year, sales in the former Danfoss Motion Controls Division fell by 11% to DKK4,224m ($768m), compared to DKK4,755m ($856m) in 2008. Operating profits dropped from DKK352m ($64m) in 2008 to DKK134m ($24m) in 2009. The declining sales resulted in excess production capacity, and some jobs were lost. By the end of 2009, the division’s headcount had fallen by about 5% to 3,764.

As part of the new emphasis on its core businesses, Danfoss is reducing its new venture activities and plans to focus, in future, on targeted projects allied to its core activities. It also plans to boost its budgets for R&D, which will also focus on its core businesses.

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