http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2009/GlobalDanfossNo42009/RSS.ashxDanfoss Group Global PagesWed, 14 Oct 2009 11:35:12 +0200http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2009/GlobalDanfossNo42009/http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2009/GlobalDanfossNo42009/?Page=1http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2009/GlobalDanfossNo42009/?Page=1MAKING MODERN LIVING POSSIBLE The year of the crisis 4 Cheaper purchasing Less metal scrapped Buying extra days off 10 17 18 Global Danfoss 4/09 • A Stakeholder Publication English edition2009-10-14T11:35:12+02:00http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2009/GlobalDanfossNo42009/?Page=2http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2009/GlobalDanfossNo42009/?Page=2Global Danfoss October 2009 26 Table of contents 22 Page 14 Black compressors lead to red figures One of Danfoss’ largest business areas has shut down production in Germany and is fighting against a deficit. Now, outsourcing and the development of new products are set to take place. Page 20-21 Our man i Brussels There’s nothing dodgy about being a lobbyist, and Danfoss’ first of his kind in the EU is already advocating for the company. 20 Page 22-25 Simon has put down the cans Some Danfoss trainees are in poor shape. But this can be changed. Fourteen weeks of healthy food and exercise do the trick. Page 26 EPS – why only ask every fifth employee? 14 Global Danfoss Published by Danfoss A/S Total number printed: 24,450 Address: Danfoss A/S, D11 DK-6430 Nordborg globaldanfoss@danfoss.com Responsible: Ole Daugbjerg Editor: Niels Chr. Larsen Prepress: Christa Hartmann Photographer: Glenn Simonsen Print: Laursen Grafisk A/S Published in Danish, English, French, Spanish, Polish, Slovenian, German, Chinese, Slovakian and Russian. Printed with vegetable colours on environmentally approved paper. Reproduction only by permission of the Editor and always with acknowledgement to Global Danfoss 22009-10-14T11:35:12+02:00http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2009/GlobalDanfossNo42009/?Page=3http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2009/GlobalDanfossNo42009/?Page=3Leader The only way is up! By Executive Vice President and COO Kim Fausing A very wise man once said: “The only thing constant is change.” This is a truth that we at Danfoss have really had to come to terms with over the course of the past year. One year ago, the world turned upside down. What we considered to be given and certain, suddenly disappeared. After more than 20 years of growth, the reality we faced was suddenly one of 20-25 per cent reduced sales compared with the year before. It was and is a very uncomfortable situation, but we should also learn from it because we must recognise that our shortcomings and weak positions surface when the level is suddenly lowered by 20-25 per cent. Therefore, the crisis will not just have negative consequences in the long run. It could also have a positive outcome, if we are prepared to learn from the situation. One thing is already obvious: we must be as close to our customers as possible to understand what they really need. One consequence of the downturn was that the largest industrial countries implemented extensive investments packages to boost the global economy. Many of these packages aim at obtaining energy-efficient solutions which reduce global CO2 emissions. By establishing close relationships with the customers, opportunities have emerged for Danfoss thanks to the fact that we already have many of these technologies in place and are well under way with the development of several new solutions. This applies both to solutions within renewable energy, such as solar inverters and heat pumps, and also to a range of new products which are “best in class” in terms of energy-efficiency within our conventional areas. And this is really good, but it just isn’t enough on its own. Unfortunately, the crisis has shown that we are not as competitive as we might have thought – and that we do not have the required flexibility. In other words, we have had difficulties making adjustments when the demand declined and, conversely, that we must invest major amounts when growth is strong. We have held on to the belief that it’s best to produce most things ourselves, ranging from internal services, the production of sub-components to logistics and much more. In times of crisis, it shows that no chain is stronger than its weakest link, and as a result we have had to resort to major job cuts and cutbacks. Going forward, we must focus attention on the entire value chain and we must carefully evaluate what we make and produce ourselves. We must consider how to best create value using our investments so that we can concentrate on what we do best and what creates the most value for our customers. We are on our way through difficult times, but I am convinced that we will overcome the crisis as a stronger, improved and more customer-orientated company. The formula for future success and sustainability is maintaining a strong focus on our customers by offering the innovative solutions that they require and at the same time keeping a strong focus on our competitiveness. 3 Unfortunately, the crisis ” has shown that we are not as competitive as we might have thought … “2009-10-14T11:35:12+02:00http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2009/GlobalDanfossNo42009/?Page=4http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2009/GlobalDanfossNo42009/?Page=4Executive Committee 42009-10-14T11:35:12+02:00http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2009/GlobalDanfossNo42009/?Page=5http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2009/GlobalDanfossNo42009/?Page=5ThE yEar OF ThE CriSiS On October 1, Niels B. Christiansen had been President and CEO of Danfoss for twelve months. in this interview, he looks back on the past year which can only be described as … indescribable! Announced by the media to be one of the most skilled managerial talents in Denmark, Niels B. Christiansen took over the position as President and CEO of the Danfoss Group on October 1, 2008. The run-up had been close to perfect. During the 12-year reign of his predecessor, Jørgen M. Clausen, Danfoss had expanded dramatically, the group had become truly global, and the profit, share price and business areas were blooming. It seemed that the first half-year of 2008 would once again end with record net sales and profit figures; and the deal to buy the controlling interest in Sauer-Danfoss had recently been closed, which meant that mobile hydraulics had once again been taken under the wing of the Danfoss group. The transfer of power which took place simultaneously with Jørgen M. Clausen’s 60th birthday was celebrated with pomp and circumstance … … but, on October 3, the first truly global financial crisis impacted. And it quickly became clear that the financial crisis was the start of recession, setbacks and unparalleled nosedives in the sales of numerous companies. Niels B. Christiansen was facing his life’s biggest professional challenge. “It is probably obvious that I was not fully prepared for how severe, deep and extensive the crisis turned out to be. We had a feeling that the really good times, with a lack of manpower and strong growth rates, would be replaced by a much reduced pace, but neither I nor others dreamt that this would turn into the biggest crisis in Danfoss’ history after only a few weeks,” says Niels B. Christiansen. By Ole Daugbjerg  52009-10-14T11:35:12+02:00http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2009/GlobalDanfossNo42009/?Page=6http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2009/GlobalDanfossNo42009/?Page=6Executive Committee In spite of the fact that after a few months, all kinds of disasters were practically queuing up to exert their impact on Danfoss, Niels B. Christiansen remained optimistic and believed in a bright future for both Danfoss and himself. And he still has that faith. “I would be naive, if I did not know that many people in and outside Danfoss had and still have their eyes turned directly on me to see how we are dealing with the crisis. I also know that I am sometimes criticised for painting too rosy a picture of Danfoss’ situation. In my opinion, this is rubbish. I strive to base decisions on facts and even though the media and others want to make a big deal out of it, I refuse to jump on the bandwagon just because someone thinks it would be fun to paint a disaster picture. It is my job to create a calm atmosphere for Danfoss. You can always approach things in different ways and if you simply must look on the dark side, then that’s very easy. I just do not see the point of that,” says Niels B. Christiansen. He emphasises that he is not insensitive or unaffected, in spite of his calm appearance. “I would be a brute, if the high number of employees we have had to make redundant as a result of the crisis did not affect me. Of course, I would rather employ more people who could be part of this incredibly fascinating company, Danfoss, but my primary task is to be “long-sighted”. I need to consider the elements which can ensure Danfoss a future which goes a good way beyond the next accounts and the next decade. And even if, figuratively speaking, I cry inwardly in some situations, it is not I who should be pitied when employees are forced to leave Danfoss. They are the ones who are suffering – and particularly so when they cannot be blamed that sales are on the decline.” The CEO regards himself as a mix between the guardian of history and the ambassador of renewal: “I feel it is my duty to stick to all the good things that Danfoss stands for and has created. I mean, sometimes I must hold back changes and revisions which, at first sight, seem reasonable, but which might shift the balance too much regarding our culture and history. On the other hand, it is definitely also my job to jog our self-image so that we continuously ask ourselves: “Is what we did yesterday good enough to win tomorrow?” My predominant focus is on Danfoss’ competitiveness. If we are going to become stronger, better and make a difference for our customers, we must introduce changes – even if it means that we must abandon methods or structures which were efficient five, ten or 15 years ago.” ” It was incredibly uncomfortable to present the first red figures in the history of Danfoss since 1961. “ 62009-10-14T11:35:12+02:00http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2009/GlobalDanfossNo42009/?Page=7http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2009/GlobalDanfossNo42009/?Page=7On debt “With the purchase of Sauer-Danfoss and due to other acquisitions and operating deficits over the past months, our debt has increased to a level which is a great deal more than that which we have previously had at Danfoss. This is in no way a lifethreatening situation, because we have, in fact, many valuable areas throughout the group which can, at least theoretically, be transformed into cash; and a long range of sensible funding agreements have been entered into over the past year with the banks, which mean that Danfoss is safeguarded. But, naturally, it is not an optimal situation. Reducing our debt is one of the absolutely most important tasks to be completed over the next few years. Having a large amount of debt is not in itself a problem so long as we pay interests and instalments as agreed, and that is what we are doing. However, on the other hand, we cannot spend the money more than once and if we pay less interest and fewer instalments, we can invest more in our competitiveness. And I would like to do that.” But then again, I cannot underline enough that we are pleased with and have great expectations for Sauer-Danfoss which has an undeniably strong position in its markets. Once these markets get going again, I think we will have the prospect of a positive development.” On geography and the group’s production sites “Danfoss must be present where our customers are and we must continuously defend our competitiveness. Therefore, we are setting up production facilities at several locations worldwide and it is unavoidable that this has been and will be at the expense of our production sites in Western Europe and the USA. We are doing this because the new growth markets and the customers are found elsewhere and because production in, for example, Denmark and Germany is very often too expensive. Our competitors have long identified suppliers located in the cheapest countries or have relocated their factories and whether or not we accept it, we can only secure our own opportunities if we follow suit – or even better – are ahead of competition. I perfectly understand if employees in Western Europe consider this to be unfair after having made a great and efficient effort, but unfortunately, reality does not make allowances. All we can do is to carefully implement the necessary changes as justly as possible. Taking no action would be entirely irresponsible.” On Sauer-Danfoss “We are only allowed to talk about Sauer-Danfoss to a limited extent, because the company is listed at the stock exchange in New York and as a consequence, strict rules apply with regard to the handling of information. At the same time, surely, it is evident that it was not such a good time for us to include Sauer-Danfoss in our accounts. As has been announced in Sauer-Danfoss press releases over the past few months, they are severely affected by the global crisis and even more so than the rest of Danfoss. On rumours and myths “I do not think I have ever come across so many rumours and witnessed so much myth-making as I have during the past 12 months. We are making a great effort to communicate as much as possible and as thoroughly as possible, but on the other hand, we do not want to pass on information before we are absolutely certain about the facts – and in times of uncertainty, this leads to lots of speculation. We cannot escape the fact that there is a certain tendency for us at Danfoss to behave in accordance with H.C. Andersen’s fairytale about the feather and the five hens. If someone hears about a theory or half a sentence, it very quickly develops enormously after two or three repetitions. I would definitely like to be able to say more about the future of the individual, but I prefer to be certain. I only hope that the employees will ask if they are in doubt. We will always give clear answers – that is, if we know them.”  72009-10-14T11:35:12+02:00http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2009/GlobalDanfossNo42009/?Page=8http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2009/GlobalDanfossNo42009/?Page=8Executive Committee On social responsibility “I am both pleased and proud that Danfoss enjoys the reputation of being a socially responsible company. I will always aim to retain that reputation. But I would also like to slightly modernise our perception, because I think we must recognise that, from time to time, we have misunderstood how best to utilise social responsibility or even used it as a bad excuse for not being consistent. In my view, social responsibility should always be in balance with our other achievements and if our finances are too poor or a manager’s performance is less than good, it would be irresponsible not to take action to deal with it. This definitely also applies to the human side. There is no point in being kind if it affects many more people in the form of lost orders and jobs – or a deterioration in the quality of life for managers.” presented profits – though, reduced profits compared to the good times, but still a profit. I must make it clear that we have to do what the musketeers did: This is really one for all and all for one. Danfoss is and always will be a company involved in many business areas. The next time, it might be the others who will thrive, whereas my department is suffering – each of us must come to terms with that.” On the targeted employee engagement “To me, employee engagement is a very important measurement criterion; whether or not the times are good or bad. So, we should take this measurement when we are fighting to cope with the bad times. There are several uncomfortable situations and events, but I am convinced that we can retain a high degree of employee satisfaction in such situations if we implement cuts and restructuring initiatives in a fair and understandable way. Therefore, good management is also one of the areas which I am keeping a sharp eye on.” On deficits “It was incredibly uncomfortable to present the first red figures in the history of Danfoss since 1961. This was partly caused by the adjustment of accounting methods after the purchase of the controlling interest in Sauer-Danfoss, but this is certainly not the full explanation. We have been severely hit by a sales decrease in a wide variety of areas. Of course, this was not easy for Danfoss employees to accept when they witnessed that several areas still 82009-10-14T11:35:12+02:00http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2009/GlobalDanfossNo42009/?Page=9http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2009/GlobalDanfossNo42009/?Page=9Notes Two cut the red ribbon Jørgen and Anette Clausen, Danfoss Chairman and his wife, both cut the ribbon when Danfoss District Heating inaugurated a brand new factory on June 24 in Bucharest in Romania. The buildings are 6,800 square metres and will consist of a factory and a new sales office for Danfoss’ activities on the Romanian market. Danfoss began production in the country in 2006 with the acquisition of Schmidt-Bretten Technology, which is Romania’s leading producer of district heating stations. Since then, Danfoss has continued making investments in Romania in order to modernise the production capacity. Currently, more than 140 people are employed in Danfoss in Romania. In 2006, when Danfoss opened its first sales office in the country, three people were employed. The Danfoss story on tour This summer, Georg Meister, the head of Visiting Services at Danfoss headquarters in Nordborg, began a tour to visit Danfoss sites located worldwide over the next few years. Georg is approaching retirement and the purpose of the tour is to pass on to employees a better sense of what Danfoss is about and what it represents. The first stop on the tour was LPM’s plant in Poland. With him, Georg had a film about Danfoss and a small suitcase filled with Danfoss’ story. The suitcase will be handed over to a “story keeper” at each site so that the story can continue to be told long after Georg has retired. Sound order resulted in prize for RA Reducing the price by 20 per cent may seem an insurmountable challenge in turbulent times. But, this was the challenge that IA sales manager in India, Sumit Tiwari, was faced with. The customer, Ingersoll-Rand Ltd, was already making regular orders for Danfoss pressure switches and based on inspiration from a value-selling workshop, Sumit Tiwari and his team managed to convince the customer that they should also buy solenoid valves. The sales people told Ingersoll-Rand Ltd that Danfoss could be the sole supplier and thanks to Danfoss’ global presence, the customer would be able to cut down on expenses for product service. The deal was closed. Sumit Tiwari and his team’s efforts resulted in RA’s first ”RA Excellence in Value Selling Award”, which was handed over in India in July by COO Kim Fausing. 92009-10-14T11:35:12+02:00http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2009/GlobalDanfossNo42009/?Page=10http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2009/GlobalDanfossNo42009/?Page=10Facts • The organisation will consist of around 80 people, with about 20 in each of the three categories: turn parts, stamping parts and plastics. • Furthermore, networks will be set up within seven categories, such as casting, electrical, mechanical parts, electromotors. The networks will work towards agreement on which suppliers to use with the purpose of cutting the number of suppliers. • A different part of the organisation deals with the purchasing of indirect goods, ie goods and services not covered by the products. Buying in bulk saves Danfoss millions So far, each business area has had separate purchasers. Now, some of them will be brought together in a global organisation – and this will ensure reduced purchase prices for Danfoss. By Niels Chr. Larsen “What on earth … are you here?” Danfoss purchasers sometimes used to bump into each other when visiting their German supplier of turn parts. A total of five business areas from two divisions bought brass parts for a few millions of Euro annually at the German company. Today, one single purchaser deals with this German supplier. In the third quarter this year, a global purchasing organisation based on categories came into existence within selected areas. The purchasing organisation aims to secure the best and cheapest possible deals for Danfoss’ business areas. So far, each business area has had their own purchasers for goods included in their products. They have also been part of more or less formal networks with other purchasers, but now they are part of a shared organisation. Henrik Henriksen heads the new global purchasing organisation: “Today, we are very often not so significant to the supplier. Largescale purchases give us another negotiation platform; volume, after all, is a compelling argument when you want to obtain reduced prices,” he says, pointing to the fact that fewer suppliers – which will be a side effect of the new way of approaching things – will also mean reduced costs in the form of fewer meetings and less business travel. Focus is on three core areas: turn parts, stamping parts and plastics. Thomas Linneberg is the head of turn parts, which employs 102009-10-14T11:35:12+02:00http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2009/GlobalDanfossNo42009/?Page=11http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2009/GlobalDanfossNo42009/?Page=11a total of 20-25 purchasers, technicians and quality staff – all from similar jobs in the divisions. “We have structured the organisation to include the required expertise and to have a global scope,” he says. Thomas Linneberg believes that suppliers will benefit from the new way purchasing has been organised. As preferred suppliers – with an appointed contact person who represents all of Danfoss – they will have more opportunities to sell goods to more business areas. On the other hand, the assumption is that they will obtain rationalisation gains from the products they process and supply to Danfoss – and that by doing so, they will get money out of the value chain. “When we establish a connection with the suppliers, it will also be easier for them to meet the specifications. They might suggest narrower margins. For example, it may not be necessary to have a 100 per cent deburring of the workpiece; perhaps 90 per cent will do the trick,” Thomas Linneberg explains. In one specific case with a supplier, Danfoss negotiated extended credit. Previously, the invoice terms were a month plus 90 days in just one business area, but this applies to them all. Meanwhile, the supplier is required to identify extraordinary savings amounting to two per cent this year – another condition which formerly was only imposed on a single business area. More price reductions are in store. Over the next three years, the discount will be increased to reach four per cent annually on parts which Danfoss is already having manufactured, with eight per cent savings on new parts. This means savings will amount to between 12 and 24 per cent within three years. The bottom line is that the new way of purchasing goods means that Danfoss saves a comfortable double-digit amount running into millions, equal to 3-5 per cent of the total purchasing volume. 112009-10-14T11:35:12+02:00http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2009/GlobalDanfossNo42009/?Page=12http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2009/GlobalDanfossNo42009/?Page=12Notes Prize for Product Manager Mark Hegberg, Produkt Manager at Danfoss, was honoured at ASHRAE’s annual meeting in June. ASHRAE is an interest organisation for engineers within the sectors of heating, cooling and air conditioning in the USA. The prize, an Exceptional Service Award, is presented to members who have served teh organisation faithfully and with exemplary effort. 25 kilometres of heating cables under the pitch Since the beginning of 2009 and in cooperation with the company VBS, Patrick Berkhout from Danfoss in Holland has been hunting for under-soil heating orders for football stadiums in Holland and Belgium. In April, the Belgian club RSC Anderlecht signed a contract for the supply of a heating system for the home ground, The Constant Vanden Stock Stadium. A total of almost 25 kilometres of Danfoss heating cables were buried in the pitch to improve the growth conditions in the spring and autumn seasons and keep the playing surface soft during winter. VBS has a specialised technique which avoids having to remove the grass carpet. The cables are ploughed in and three days later, the football pitch is ready for the players. Honoured in The Great Hall of the People Much honour has been bestowed upon 28-year-old Zhang Yonghao since he joined the central warehouse at Danfoss’ factory in Wuqing in China in 2003. Two years ago, he won a contest for truck drivers on the Chinese national TV programme, CCTV10. Later, he and other “Outstanding Migrant Rural Workers” were praised by Vice President Zhang Dejiang in The Great Hall of the People in Beijing. 11 years without accidents The production area MCG at Danfoss’ factory in Grodzisk in Poland celebrated an unusual anniversary earlier this year: 4,000 days without accidents, a time span equal to 11 years. 59 employees work at 69 different machines, which resembles other areas in terms of machine complexity. The unusual anniversary came about thanks to the very high commitment among employees to the working environment, the extensive competencies and efficient communication between production employees and white-collar employees. 122009-10-14T11:35:12+02:00http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2009/GlobalDanfossNo42009/?Page=13http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2009/GlobalDanfossNo42009/?Page=13Honesty is good business If a competitor’s solution is better than Danfoss’, this quarter’s Values Ambassador, Ahmet Canpolat, from Heating in Holland, is honest with the customer – even if it means that Danfoss must say goodbye to the order. Ahmet is an Account Manager and has contact with consulting engineering firms, contractors and developers during building projects, where Danfoss’ heating and cooling solutions are needed. And he believes that being honest with customers is essential. Otherwise they will not return. “In a family where blood ties make relatives stick together like a magnet, you might get an extra chance. But, there are no extra chances in business. If you are dishonest, your shop is quickly empty,” says Ahmet Canpolat. But no Danfoss employee would lie to customers, so what makes Ahmet special? According to his manager, Sales Director Henry Steenbakkers, what is special about Ahmet is that he has a quirky way of sowing the seed of a future deal in sales situations where Danfoss is not competitive. And Henry Steenbakkers knows of several instances when a consulting engineering firm has chosen Danfoss as the supplier of the heating system for a new construction project even before they have been introduced to Ahmet’s proposition. “They trust him 100 per cent. If he has phoned them to say that Danfoss is the best, they often don’t collect other offers. For them, Danfoss is a natural choice,” explains Henry Steenbakkers. Like a bulldog But, obviously, honesty alone has not been the recipe for Ahmet’s success. He also has a thorough understanding of Danfoss’ products and the market he operates in. And he fights for every order. So, in connection with a construction project, when a customer needs a quotation for the heating system, Ahmet makes a thorough analysis to make sure that price, quality, energy consumption and user-friendliness are the best they can possibly be – and that they exceed what the competitors offer. “He takes hold like a bulldog until he is able to present a Danfoss solution which gives maximum value to the customer while at the same time generating a profit for Danfoss,” says Henry Steenbakkers. Ahmet Canpolat has been with Danfoss since 1991. He is 42 years old and lives in Schiedam, Holland, with his wife and two sons. 13 Photo: Githa Erich Each quarter, the Executive Committee appoints Danfoss Values Ambassador. This time, it is Account Manager Ahmet Canpolat, Danfoss in Holland.2009-10-14T11:35:12+02:00http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2009/GlobalDanfossNo42009/?Page=14http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2009/GlobalDanfossNo42009/?Page=14One of Danfoss’ largest business areas is set to shut down production in Germany and is fighting a deficit. Now, outsourcing and the development of new products will take place. Black compressors By Niels Chr. Larsen The global recession has been hard on Danfoss Household Compressors: 2008 was in the red; 2009 will yield a profit. But the business area is undergoing full restructuring, and next year the first significant improvements will show, predicts Mogens Søholm, Head of Danfoss Household Compressors (HC) for nearly two years. With its 3,000 employees and current net sales of 325 million Euro, HC is one of the largest business areas in the Danfoss Group. The big news this summer was that HC will shut down production in Flensburg. This is extremely sad for the employees, says Mogens Søholm, “but it is the right decision to make considering our situation”. “Household compressors represent a market that generates a very small profit and we need to create an environment where Household Compressors can independently make money, even when we are experiencing a market decline like the current one.” The relocation of production from Flensburg to China is the first step. This reduces salary expenses significantly but two other problems also need solving, points out the President of HC. One is that Danfoss produces far too many compressor parts. The other is that we are not technological leaders – at least not in terms of compressors for refrigerators. “We have a tradition of producing everything ourselves, but when we outsource the production of, for example, motors, the processing of the cast iron block, the crankcase and other machine-processed parts, we can minimise the need to invest in the maintenance of large production facilities – and can instead invest more in the development of new products,” he points out.  142009-10-14T11:35:12+02:00http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2009/GlobalDanfossNo42009/?Page=15http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2009/GlobalDanfossNo42009/?Page=15lead to red figures 152009-10-14T11:35:12+02:00http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2009/GlobalDanfossNo42009/?Page=16http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2009/GlobalDanfossNo42009/?Page=16Facts Danfoss Household Compressors produces compressors for three main areas: • Refrigerators and freezers. This area produces around 70 per cent of the total annual quantity at HC. The market share is around 8 per cent. • Light commercial – compressors for bottle coolers, restaurants, supermarkets and similar. The market share is 15-20 per cent. • Automobile market. Compressors for lorries, boats and luxury cars. Market share is 80-85 per cent. Tighter energy requirements The outsourcing of parts has already begun and must be complete by the end of 2011. Both Chinese and Belarussian subsuppliers are in play and they will be able to deal with around half of the in-house production currently seen in Danfoss. In terms of development, the focus is on energy, energy and energy. For the majority of the products, the goal is high-quality and energy-efficient. “If we are not at a technological cutting edge, we have no real justification,” says Mogens Søholm. In the third quarter next year, two new energy-friendly compressor products will be launched. And the strategy is perfectly in line with international activities to save energy. In July, Brussels issued new standards on energy-consuming products. The standards were adopted by the European Parliament and member countries. The first two deal with televisions, freezers and refrigerators. The EU estimates that they alone will result in annual savings of 30 terawatt hours from 2020, equal to three quarters of the total energy consumption in Denmark. Specifically, this means that refrigerators below the current A-level will not be sold from July 1 next year and that only refrigerators with the current A+ rating will be sold from 2012. At the same time, the regulations surrounding the most energy-efficent refrigerators will be tightened and it is these requirements that Danfoss is supposed to fulfil. “The two compressors that will be launched next year are the first steps in a completely new product range and we are in the process of developing a new platform of compressors which only operate using variable speeds and, therefore, result in major energy improvements.” Consolidation Household Compressors’ strategy, which is set to put the business back in the black from 2011 and make it possible for Danfoss Household Compressors to make money even in a harsh market like the present, will not in itself – underlines Mogens Søholm – bring the business area up to number one or two in the market; a position which Danfoss normally aspires to within all of its business areas. Therefore, it would seen natural to join other partners. As Mogens Søholm puts it: “We consider it necessary to perform a consolidation in the market and will work to obtain this, but of course we do not know whether and when this will succeed. In any case, we need black figures to appear on the bottom line and that’s what we are preparing for.” The household compressor market has 10-15 key suppliers. Currently, there is a major excess capacity on a world market which, under normal circumstances, would buy 140 million compressors annually. Danfoss Household Compressors is not the only one struggling to defeat deficits. 162009-10-14T11:35:12+02:00http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2009/GlobalDanfossNo42009/?Page=17http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2009/GlobalDanfossNo42009/?Page=17Facts 5S - is a method to systematise order and tidiness. The method consists of five steps: LPM scraps less metal It might only take the weight of a few dust particles to make a 140-kilo steel and copper block tip into the dustbin. That’s what they have learned at the heat exchanger production plant in Finland. Last year, defective soldering and the subsequent scrapping of workpieces caused by dust particles and other defects, cost the factory close to 391,000 euros. But, thanks to a systematic cleaning system, called 5S, and improved goods flow with fewer work-stations, this has changed. In a joint project under the Danfoss Productivity Program (DPP), employees from the production and quality departments began with what seemed to be unsolvable problems with inferior soldering on the heat exchangers. The team found that dust particles and other little foreign objects were the probable cause. Dust had already been identified as causing scrap but the team used problem solving tools to address further causes and find new ways to handle problems quickly. The solution they came up with was to create standardised work descriptions, to make sure that production areas stayed clean and to ensure that components for the finished district heating stations were not placed at work-stations too long before being mounted. 1. Sort – Distinguish essential things from unessential things 2. Systematise things – Find a place for everything and put it where it belongs 3 Systematic cleaning - Scrub and scour 4. Standardise – Create coherence, meet standards 5. Self-discipline – Standards must be kept or improved By Jens Degn “The longer the product lead time, the greater the likelihood that the products will be polluted with dust. Our new ways of working and using the DPP tools has saved us the equivalent of 40% of the scrapping expenses in the first half of this year compared with previous years,” says R&D engineer Pasi Kerttula, who is leader of the quality work stream. More improvements are under way. During the project, the employees became even more familiar with the product and also considered the impact of the choice of materials and product design on quality. As a result of this, they have revised the design standard of new product designs which can minimise the risk of faults in production in the future. Marko Kolari sets up a large substation in Danfoss LPM’s factory in Finland (Leppävirta). 172009-10-14T11:35:12+02:00http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2009/GlobalDanfossNo42009/?Page=18http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2009/GlobalDanfossNo42009/?Page=18Dave Fenocchi Yasar Yüce Zoran Sankovic We are part of a ” family and we stick together in good as well as in poor times. A little less money hurts, but I’ll manage. “ Rodolfo Lopes Yasar Yüce Thomas Hill Bi Yongxin Ding Guoqi 182009-10-14T11:35:12+02:00http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2009/GlobalDanfossNo42009/?Page=19http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2009/GlobalDanfossNo42009/?Page=19Major backing of ‘self-paid break’ idea – especially on new markets Take a handful of extra days off in the autumn and pay for them yourself. This was the request from the Executive Committee to all employees before the summer holiday. The initiative was one of the strategies put in place to help Danfoss steer through the financial crisis. The response shows that the Executive Committee’s initiative was well supported, particularly by the factories and companies which are located on new markets, such as China, South America and North America, as well as Eastern Europe. Support amongst white-collar employees in those countries exceeded 70 per cent in some places. Generally the support rate is lower in the production areas, but almost every fourth production employee in China chose to buy extra days off. In Eastern Europe the figure is 16 per cent. “We would like to thank everyone who supported the self-paid break initiative. As a result of the major backing it received, we have the prospect of saving almost 5.9 million Euros,” says COO Kim Fausing. Thomas Hill, Electrical Laboratory Technician, Danfoss Scroll Technologies, USA. ”I thought it through one weekend. I am the only one in our family who has an income and my wife and I did some calculations. We found out that we would lose around 100 dollars of my monthly pay, money which is spent on gas for the car to drive the kids to school. However, at work I have helped find ways to cut costs; for example we will start to recycle refrigerants and in the future we can save a lot of money. I feel good about that.” Dave Fenocchi, Project Manager, Danfoss Scroll Technologies, USA. ”My colleagues and I have discussed a similar initiative and hopefully this will turn out to be a way to retain staff. For me this is about keeping Scroll Tech as an important local employer. I will spend the days off with my family and go travelling. It does not have that great an impact on my salary - we can still make ends meet.” Rodolfo Lopes, IA, Sales Supervisor, Brazil. “All of my team colleagues have bought some days off. We have tried to support every initiative that has been taken to save money and help Danfoss avoid lay-offs. Our individual contribution will not ’save lives’, but as a Brazilian proverb goes: ‘Step-bystep, and we will get to the finishing line’. Once the turbulence is over, I will be even more proud of my decision to contribute.” Zoran Sankovic, Manager Assembly, Danfoss Bauer GmbH, Germany. “I supported the initiative and did so in solidarity with my colleagues who work reduced hours.” Yasar Yüce, Product Manager, Danfoss Bauer GmbH, Germany. “We are part of a family and we stick together in good as well as in poor times. A little less money hurts, but I’ll manage.” Bi Yongxin, Accountant, BS Wuqing factory, China. “I work in the accounting department and have witnessed the impact of the crisis on Danfoss. I want to help in difficult times and bought the days off without hesitation. My colleagues did the same. We are aware that the future depends on Danfoss as a sound and expanding business and all of us help out.” Ding Guoqi, Plant Manager, RA AC-TXV Wuqing factory, China. ”I did not apply for extra days off. The employees at the factory have willingly accepted to do fewer hours because they have not had quite so much work on this year. Therefore, as a supervisor, it is important that I show up every day.” By Lene Ilsøe Nielsen 192009-10-14T11:35:12+02:00http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2009/GlobalDanfossNo42009/?Page=20http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2009/GlobalDanfossNo42009/?Page=20Our man in Brussels There’s nothing dodgy about being a lobbyist and Danfoss’ first of his kind in the EU is already involved in advocacy for the company. By Ole Kanstrup Senior Director Public Affairs – that’s the title on Lars Dyrhagen’s business card. It could also have said lobbyist. In August, he moved into Danfoss’ new lobbyist office in Brussels. The thing is, where Washington DC is said to be the world’s focal point of foreign and safety policy, the EU is the world’s biggest economy, which makes it the power base for trade and industry. “If Danfoss wants to influence decision-making within energy policy, free trade and the storage of food – issues which mean the world to our business, there is simply no way to escape Brussels,” explains Lars Dyrhagen. Out in the open But, isn’t lobbyism related to money under the table, secrecies and threats? And does anybody in the elevated circles of Brussels take heed of what Danfoss says? According to Lars, the answer to the first question is a clear “no”, and a clear “yes” to the second. Lobbyism is, essentially, about gaining a say by providing expert knowledge for politicians and civil servants. This is a legal and open process. Moreover, the EU would in fact not function properly if it wasn’t for the lobbyists: politicians and civil servants most often do not have the time to immerse themselves in technical or legal issues. “So, if companies and lobbyists have a good reputation and have something substantial to offer, the political decisionmakers will consult you,” says Lars Dyrhagen. Heat pumps included in Act He exemplifies by referring to the EU’s new sustainable energy directive which the European Parliament decided on in the autumn last year. The Directive is set to help increase the EU member countries’ total consumption of renewable energy to 20 per cent by 2020. And several of the MEPs requested that the Act specified which products would help member countries reach the target. Facts The key institutions in the EU are the Commission, the European Parliament and The European Council. Most well-known, the Commission introduces the Acts. The European Parliament can propose amendments, whereas The European Council adopts the Acts. The Commission has 27 members, one for each country. The European Parliament consists of 736 MEPs elected by the people and the European Council consists of heads of governments and ministers from each country. 202009-10-14T11:35:12+02:00http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2009/GlobalDanfossNo42009/?Page=21http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2009/GlobalDanfossNo42009/?Page=21However, as an MEP you do not have detailed lists of energyfriendly products to hand. Also, you may not happen to know that Danfoss heat pumps produce more energy than they consume. But, Lars does and he managed to quickly submit the exact technical specifications of the advantages of heat pumps to the Parliament Committee on industry and energy. This led to heat pumps getting an official EU seal for being one of the products which the EU countries intend to prioritise in order to increase the share of renewable energy. “This is a perfect example that lobbyism does pay off. The Directive for renewable energy will help both the European heat pump market and others expand considerably,” says Lars Dyrhagen. So far, Danfoss has two official lobbyists – Lars Dyrhagen in Europe and Robert Wilkins, Vice President Public Affairs & Industry in the USA. There are around 15,000 lobbyists in the EU. In Washington DC there are 12,000. Photo: Philippe Veldeman According to Lars Dyrhagen, EU’s politicians are receptive as long as they are provided with 100 per cent credible information. 212009-10-14T11:35:12+02:00http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2009/GlobalDanfossNo42009/?Page=22http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2009/GlobalDanfossNo42009/?Page=22Working Life Simon has put down the cans Some Danfoss trainees are in poor shape. But this can be changed. Fourteen weeks of healthy food and exercise do the trick. It sounds absolutely crazy. His mates are laughing, but Simon Laygardt confirms it. During one week he managed to drink 200 cans of Coca-Cola. However, thankfully this is a good while ago. “I played computer games, only drank Coca-Cola and had nothing to eat. Of course, it wasn’t healthy and I was tired, but I could not sleep because of the sugar in my body.” Today, the 18-year-old data technician trainee realises that it was a bit too much. In June, he and around 20 other trainees completed the project called Trainees on the Move, which is a 14-week course focusing on exercise and information about nutritional food. The initiative started in 2008 because it had been shown that trainees and apprentices were in poor shape and ate too much junk food. This was the fifth time the project had been run. All of the participants took a fitness test twice in the course of the 14 weeks and on the basis of the two tests, a physiotherapist checked whether their fitness rating had improved – or perhaps deteriorated if no hard effort had been put in at the fitness centre or on the bicycle rides. Following the 14 weeks, Simon had the second best improved fitness rating. And the cans are no longer piling up in. “It costs a lot of money to buy all that cola, and now that I have joined a fitness centre, they are expensive calories to get rid of,” he says.2009-10-14T11:35:12+02:00http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2009/GlobalDanfossNo42009/?Page=23http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2009/GlobalDanfossNo42009/?Page=23Jesper Andreas Jensen, project coordinator, aged 44: “I want to eat healthily so it’s grist to my mill that the canteens in Nordborg make an effort to serve nutritional food. You can have anything from salmon to low-fat chicken salad and if I was the only one to eat in the canteen, I would be all for having even more food like this being served. However, there are also some employees who appreciate more rich fare so I think that the current level of nutritional food is appropriate.” Da on a s s p o f n By Lene Ilsøe Nielsen and Ole Kanstrup. Some like Coca-Cola and French fries; others prefer apple juice and salad. If you have your daily lunch in a canteen, you are most likely into healthy food. At least, this is the conclusion of a World Health Organisation (WHO) report produced in 2007. According to the report, employees in workplaces offering canteen schemes have, generally, more healthy eating habits than those who do not have access to a canteen. Global Danfoss has asked a dietician whether nutritional food improves work performance and has investigated what’s on the menu cards in Danfoss canteens around the world. The obese of the world In 2005, WHO recorded facts on the overweight among the world’s population. • approx. 1.6 bn adults above the age of 15 are overweight globally. • at least 400 mil. are considered obese. In 2005, 20 mil. children under the age of five were obese. In future, the figures according to WHO will be: • by 2015, around 2.3 bn adults will be overweight • 700 mil. will be considered obese. So far, cases of obesity have mostly been recorded in rich countries, but a dramatic increase has been recorded in the low-income countries, especially in the major cities. Source: WHO e lat 232009-10-14T11:35:12+02:00http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2009/GlobalDanfossNo42009/?Page=24http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2009/GlobalDanfossNo42009/?Page=24Working Life Food officer checks the healthiness The canteens in Nordborg prepare food according to a concept called healthy Canteen – and have engaged a dietician to check the food quality. When dietician Malene Iskov enters the doors to the three canteens in Nordborg on one of her several unannounced visits every year, she acts as a food officer. She has the job of checking how healthy the food is. And even though she does not issue fines, the kitchen staff do take the visits seriously. But why do the canteens hire a dietician to check the food? This was set in motion based on findings from user surveys that said that canteen guests prefer healthy food. So, in 2008, the canteens introduced a food concept that swept the empty calories off the table in the kitchens. The concept is called Healthy Canteen and means that a large percentage of the food in the canteens consists of vegetables, bread rich in fibre, low-fat meat and low-fat dairy products. The canteens have also hired a dietician to make sure that the food is nutritionous. “It is more satisfying to prepare healthy food than French fries so we challenge ourselves, and the inspection visits of the dietician keep us on our toes. We would not want her to wag her finger at us,” says Ilse Dahl, head of the canteen in building E24 – the biggest of the canteens in Nordborg. Efficiency improving Let us return to Malene Iskov – the dietician at the lunch buffet. The inspection is not a five-minute job. She carefully examines the mix of meat, fruit, bread, pasta and garnishes on the buffet. She also talks with the kitchen staff about the raw materials they order and how they prepare them. The most recent inspection visit took place in March and it marked the nutritional combination as first class. But can’t muffins be just as good as carrots and beef? “No, there is no doubt in my mind that work performance improves noticeably if the canteen food is healthy. So there’s money to be gained from nutritionous food,” points out Malene. The canteen guests have also given it the thumbs-up. A user survey conducted in April this year shows that 84.8 per cent are happy with the quality. There are around 2,400 employees in Danfoss in Nordborg, of whom around 770 regularly have their lunch in one of the three canteens, which are operated by Danfoss Global Services. Tina Truelsen, production employee, aged 40: “The selection of food in Nordborg is so wide that you can have varied meals and always get something tasty. It’s good that the canteens try to make the food more healthy. However, when they began on healthy food, I was a little afraid that we all were supposed to eat green salads all the time. For me, a piece of chocolate or meatballs represent so much about quality of life. It can’t be all about green food!” Facts Danfoss has no global policy or standard regarding the nutritional composition of canteen food served worldwide. Also, there are no rules requiring the existence of a canteen at every Danfoss site. 242009-10-14T11:35:12+02:00http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2009/GlobalDanfossNo42009/?Page=25http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2009/GlobalDanfossNo42009/?Page=25The bitter and the sweet The canteen in Danfoss (Hangzhou) prepares food for everybody’s taste. Some of it is hot, some sweet, some light, some salty. This is to accommodate the preferences of employees from different regions of the country. 130 employees have lunch in the canteen and they have the opportunity to submit their suggestions for the menu and other aspects of the canteen. Traditional Polish food still popular A recent customer survey shows that Polish employees are pleased with both traditional home cooking and the international food served at the factory in Grodzisk Mazowiecki in Poland. This also goes for food with a high content of calories, such as fried meat, French fries and greasy and floury dishes. But healthy food is also on offer in the canteen, which is run by an external catering firm supplying the food for around 350 employees on a daily basis. Vegetables cut for the salad buffet comply with special sustainable requirements and are subject to checks by the food control authorities. Malgorzata Lukasik, an office assistant, is helping herself to a salad. Clean canteens in China When the employees at the Anshan factory in China have their lunch, they are met with fresh plants and a clean canteen. Here’s receptionist Wang Xue with today’s meal. She appreciates the healthy and wide selection of food served in the canteen. Notices are put on tables in the canteen that display the right combination of healthy and nutritional food. Around 70 employees eat lunch in the canteen on a daily basis. Soup of the day in Russia Chief chef at Danfoss Russia, Taisa Dormova, has prepared food for the employees for 15 years and she knows which courses they prefer. In Russia, it is standard practice to have soup for lunch and the employees find Taisa’s soups very tasty. In addition to soup, the canteen also serves fresh vegetables and courses with meat, fish and fruit. 300 employees use the canteen. 1,200 eat here every day The goal of the employees in the two canteens at the compressor factory in Zlaté Moravce in Slovakia is to cook food to the liking of the workers in the production area and the offices. That goal means that there is a large selection of food from the buffet, including cereal products, greens and legumes, such as beans. Fast food is also served, if the employees request it. Erika Turzova, who has lunch in the canteen every day, says that around 1,200 employees use it. Twice a month the canteen prepares food from foreign cuisines; Hungarian, Italian and Chinese being among them. Dining out Keith Kersten, Key Account Manager, Danfoss Drives, often pops by one of the local restaurants, which are five minutes from the Milwaukee factory, to eat lunch. Alternatively, there is a dispenser at the Danfoss factory, which does not have a canteen. This is Keith Quesadilla on the terrace of Mo’s Restaurant, a popular place for outdoor meals during the summer. His three favourite places to eat have local owners and serve freshly cooked food to the customers. The employees in Milwaukee have a one-hour lunch break. 252009-10-14T11:35:12+02:00http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2009/GlobalDanfossNo42009/?Page=26http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2009/GlobalDanfossNo42009/?Page=26By Ole Kanstrup EPS – why only ask every fifth employee? As opposed to the survey in 2007 when all employees were questioned, only 20 per cent will be asked to fill in the questionnaire. Why? “We have decided that the EPS survey will take place every year, instead of every second or third year. In this way, we will continuously be made aware of the satisfaction and motivation levels in the organisation. In return, we will not ask all 20,000 employees to take part. Administering and following up on the responses from so many people is simply too time-consuming. Statistically, 20 per cent is sufficient for obtaining representative responses. However, this does not mean that the full version of the EPS survey has been discarded. We expect to conduct the full survey every third to fifth year.” We are in the middle of the worst economic crisis in the history of Danfoss. Why don’t you put off the survey until things have settled down? “It is precisely because we are experiencing the worst crisis in the history of Danfoss that we have chosen to conduct the survey now. The crisis has resulted in many changes and it is exactly in such a situation that it is vital for us to get a hint of how content and motivated the employees are. We have, so to speak, decided not to close our ears just because the crisis could result in a poor score.” In 2007, every department was provided with a report containing its own scores. This year, reports will only be prepared for each business unit, so is it at all worth the effort for the employees to answer the questions? “It certainly pays to submit your answers. It is true that results reports will not be prepared at department level. This is one of the things we must sacrifice in order to conduct annual surveys. However, the results are still taken seriously. If a business unit scores considerably lower than the average score, the management is of course under an obligation to find out about the reason – and to improve.” Considering that you will only ask every fifth employee, will the results of this survey be comparable with the results of the EPS 2007? “We can and intend to make comparisons between the levels in the organisation which receive a results report – meaning every business unit in Danfoss. But, we cannot make comparisons between each and every department. That will only be feasible with the major extended EPS surveys.” Q&A On this page in each edition of Global Danfoss we will focus on a central issue. In this edition, Senior Vice President of global HR Rick Eckebom answers questions about EPS – the measurement of employee perception which will be conducted this month. 262009-10-14T11:35:12+02:00http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2009/GlobalDanfossNo42009/?Page=27http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2009/GlobalDanfossNo42009/?Page=27Notes Big art in Canada Danfoss Canada was the sponsor of the celebration to mark the re-opening of the Art Gallery of Ontario. The museum is one of the finest in North America and has a collection of more than 70,000 works of art. The internationally renowned architect Frank Gehry was in charge of the reconstruction of the museum, which houses an exhibition area of 54,000 square metres. Several Danish design and furniture companies contributed to the layout of the museum’s new members’ lounge, café and restaurant. Rabobank builds a green head office In the beginning of 2010, a newly-built office building 105 metres tall and with 56,000 m2 of floor space, will appear in the centre of Utrecht in the Netherlands. The building, which will consist of two towers, will be the new head office of the financial services provider Rabobank. The major task for the new Rabobank head office was to make it energy-efficient and have flexible working places for employees. Danfoss’ product AB-QM has many benefits, such as savings on installation, commissioning and calculations, but the key one here is that it would help Rabobank reduce energy-use and CO2 emissions of nearly 64 tonnes every year. Rabobank chose the product, making this the biggest project ever sold in the Danfoss AB-QM business. Polish blood donors Danfoss in Poland has set up a group of blood donors amongst the employees. By the end of June, 20 employees donated a total of nine litres of blood. This was the second time that Danfoss employees in Poland donated blood. Last year, 32 donors donated 13.5 litres. Congress member on a study trip The private sector is set to play a key role as the USA makes its way towards energy independence and new energy-efficient technologies, like that of Danfoss Turbocor, could play a major role in the reduction of the country’s energy consumption, said congress member F. Allen Boyd Jr. during his visit to the company in early summer. Danfoss Turbocor – located in northern Florida – employs 176 people and produces energy-friendly compressors for air-conditioning applications. 272009-10-14T11:35:12+02:00http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2009/GlobalDanfossNo42009/?Page=28http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2009/GlobalDanfossNo42009/?Page=28Danfoss around the world Kazakhstan Seven years in Kazakhstan July 5 was the seventh anniversary of the Danfoss office in Kazakstan and this was celebrated with a large cake and physical challenges on the River Chilik. The 13-strong staff were invited to take part in river rafting. General Manager of Danfoss in Kazakstan, Bibigul Zhuzbayeva, says that the challenges on the river boosted the team spirit which is a good thing in these turbulent times. . USa Focus on energy and the climate in USA The new administration in the US is highly focused on establishing a new energy and climate policy. At a recent EnVisioneering symposium in the United States, Danfoss hosted more than 60 HVAC&R end users, OEMs, contractors, government agencies and NGOs to discuss the status of the complex legislation passing through congress. A representative from the US State Department also provided insights from the recent Montreal Protocol meetings held in Geneva. The event was held at the prestigious Capitol Building in Washington DC where policy and legislation is passed. England London Docklands is heated by Danfoss 350 district heating units from the Danfoss company Gemina Termix have been installed in London Docklands in buildings which house almost an equal number of flats and businesses. Tower Bridge can be seen from the lobby of Indescon Court on Canary Wharf. The buildings vary in design; one consists of 16 floors while several facades are covered with terracotta tiles and patinated copper. The units were sold via Gemina Termix’ agent in the UK. The plot is 88,500 square metres and the construction work will be completed by 2011.2009-10-14T11:35:12+02:00