http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2011/GlobalDanfossNo12011/RSS.ashxDanfoss Group Global PagesFri, 09 Mar 2012 13:19:55 +0100http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2011/GlobalDanfossNo12011/http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2011/GlobalDanfossNo12011/?Page=1http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2011/GlobalDanfossNo12011/?Page=1MAKING MODERN LIVING POSSIBLE Already ahead of plan • Full house in Monterrey • Polish proof: Men can multi-task • Bigger profit with fewer products • Ethics Hotline: now, also for the anonymous One Year After Core & Clear Major feature on the first year of Danfoss’ new strategy, Core & Clear. 1/2011 | A Stakeholder Publication | English edition2012-03-09T13:19:55+01:00http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2011/GlobalDanfossNo12011/?Page=2http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2011/GlobalDanfossNo12011/?Page=226 Published by Danfoss A/S Total number printed: 22,150 Address: Danfoss A/S, D11 DK-6430 Nordborg globaldanfoss@danfoss.com Responsible: Ole Daugbjerg Editor: Niels Chr. Larsen Prepress: Christa Hartmann Photographer: Glenn Simonsen and Rasmus Erslev Holt Print: Laursen Grafisk A/S Published in Danish, English, French, Spanish, Polish, Slovenian, German, Chinese and Russian. Printed with vegetable colors on environmentally approved paper. Reproduction only by permission of the Editor and always with acknowledgement to Global Danfoss 20 4 Global Danfoss January 2011 4 AlREADy AhEAD of PlAn. Important parts of the Core & Clear strategy close to target. 6 WhERE To GET ThE monEy fRom – and where to spend it. 8 oK iS noT GooD EnouGh. Danfoss must equal ‘world-class quality’. 14 hAlf AS mAny PRoDucTS, buT A biGGER PRofiT. 16 PolES WoRK ovERTimE To REcRoWn ThE KinG. Core & Clear can also hurt. 18 Danfoss 10 o’clocK. 22 hAvE: millionS. WAnT: foREiGn APPlicATionS. 25 nEW inTERnAl bAnK lEADS To mulTi-million EuRo SAvinGS. 28 Danfoss ARounD ThE WoRlD 22012-03-09T13:19:55+01:00http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2011/GlobalDanfossNo12011/?Page=3http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2011/GlobalDanfossNo12011/?Page=3Leader From minus to plus By Executive Vice President and COO Kim Fausing Being a top executive in a large company, you sometimes break into a sweat when you take a look at the organization: 26,000 people, each with his or her dreams, expectations, ambitions and perceptions of the surrounding world. Each with their experience of what Danfoss is, based on experiences, relationships with colleagues, customers, suppliers and others who we interact with through our job. And the idea of moving such complex machinery in a different direction can seem overwhelming. Several gear wheels need to be turned the same way for it to function properly. Today, a year after we launched our Core & Clear strategy through this magazine, the Intranet and at a range of meetings in Danfoss’ factories and sales offices worldwide, we are able to establish that we succeeded with the first part of the mission. We have turned Danfoss around. The tangible proof is from a massive minus in 2009 – the biggest loss in the history of Danfoss – to a major plus in 2010, where we, most likely, will be able to present the biggest profit in the history of the company. In fact, this is very impressive. I thank all employees for the many individual efforts which made this possible. As is evident in this edition, we are now able to present many excellent success stories, but what is most important is that they are not isolated successes. They are connected, rooted in one large and overall plan for Danfoss. Our businesses are now grouped in three main groups: five market-leading divisions focusing on climate and energy, six strong bubbling businesses’ with a fantastically large potential and a few businesses for which we are trying to find a future outside Danfoss. And with the Perspective plans, we have defined the direction for each of the businesses and the aspiration of each business is in place for the period until 2015. We have taken the first big step. The business has turned around and we are ready for the next push towards achieving top results. I look forward to seeing how the gear wheels of Danfoss will turn over the next few years. ” We have turned Danfoss. 32012-03-09T13:19:55+01:00http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2011/GlobalDanfossNo12011/?Page=4http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2011/GlobalDanfossNo12011/?Page=4Core & Clear – One Year After Danfoss progressed considerably in several areas in 2010. Here is Helle Antonisen (left) and Henriette Johannsen from the sensor production in Nordborg, Denmark. 42012-03-09T13:19:55+01:00http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2011/GlobalDanfossNo12011/?Page=5http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2011/GlobalDanfossNo12011/?Page=5We are already ahead of plan Three significant parts of the Core & Clear strategy will soon have been implemented. By NIElS CHr. lArSEN Improvements at top and bottom Danfoss’ results obtained over the past year have resonated amongst commentators and professionals. Professor at the Department of Business Studies, Aalborg University, Denmark, Anders Drejer, commented on the third quarter’s financial accounts in the Danish newspaper Politiken. He recognized Danfoss’ crisis strategy: to cut the business to the bone and said that similar saving plans have been implemented in several other companies. However, the most common reason is to improve the company’s bottom-line – meaning improving the earnings. On the other hand, it is very seldom that such sweeping measures cause the figure in the top line, meaning the company‘s sales measured in terms of net sales, of the accounts to increase too, he pointed out. ”I am surprised that such major savings lead to improved net sales, especially in the time of a crisis. It is impressive and shows that the company has made divestments or has reclaimed control of the problematic parts of the company.” Many employees probably considered Core & Clear to be a grand and elaborate strategy designed by the top management. It was launched precisely one year ago, with a lot of fanfare and much ado. There were worldwide meetings, a new Intranet – and then it went quiet. ”So, that’s that,” many might have thought. However, Core & Clear has not simply passed into memory. Preliminary results show that the one-year-old is still full of vitality, and perspective plans will be rolled out in Danfoss in the near future, all with the distinct imprint of the strategy. ”We are well ahead of plans in the main – but it is obvious that many employees have still not felt the full effects of Core & Clear. The division perspectives have now been adopted and the strategy will become more relevant and immediate,” says Danfoss President Niels B. Christiansen. He draws attention to three areas where major results have already been obtained: payment of debt, sale of non-core businesses and, most importantly, the bottomline figure. • Debt: The plan was to reduce the debt from 1.45bn euros to 0.7-0.8bn by 2015. The status one year later is that debt has been reduced by 0.35bn – half of the target for the entire five-year period. • Sale of non-core businesses: The largest, Danfoss Household Compressors, has been sold. And there is a good chance that others will follow soon. Furthermore, a number of service functions have been taken over by others. • Bottom-line result: Following three upward adjustments during 2010, the 2010 profit is now expected to reach 0.32-0.35bn euros, compared to an expected 0.1-0.17bn in March 2010. ”That’s what we should be most pleased about. We have managed to significantly bring down debt at the same time as we have improved our earnings. This proves that Core & Clear is the right strategy for us.” read on to find out how Core & Clear has already made its clear mark in Danfoss. 52012-03-09T13:19:55+01:00http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2011/GlobalDanfossNo12011/?Page=6http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2011/GlobalDanfossNo12011/?Page=6Core & Clear – Core business Where to get the money from – For the first time, the whole of Danfoss has been scrutinized to define where best to invest in new products and projects and where to get the money from Danfoss Burner Components is a good example: everybody knows that oil will run out one day. Therefore, there aren’t many development opportunities or much of a need to grow a business area which produces burners and other oil burner components. But the area is a clear number one in the market and, following a trimming of all the processes, makes really good money. And they will most likely continue to do so over the next few decades. It is for this reason that Danfoss Burner Components has been labeled as `core’ – with the addition `for cash’. In other words, a sort of cash cow which probably cannot expect to grow very much, but which, on the other hand, needs to be nurtured so that it is able to fulfill its key task of supplying some of the money needed to invest in areas that offer greater growth opportunities. And this is a key element of the analysis that has been made of Danfoss’ core businesses. It is a matter of the targeted channeling of funds to the right places. ”I am sometimes met with the notion that we spend less money on innovation as a result of Core & Clear. But, it is the other way round. We have never spent so much on development as we are doing now, we are just more focused in the way we spend it. The analysis has provided us with more clarity as to where and to By NIElS CHr. lArSEN 62012-03-09T13:19:55+01:00http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2011/GlobalDanfossNo12011/?Page=7http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2011/GlobalDanfossNo12011/?Page=7facts core for cash: A no. 1 or 2 in a segment which does not necessarily grow anymore. This is primarily about optimizing processes; the area must generate cash flow for adjacencies; not too many development activities. core for growth: A big and strong core business, typically within climate and energy; an investment area where the target is to grow more compared with the market; this area will get new projects and jobs. Adjacencies (`bubbling businesses’): Not in a dominant position currently, but have the ambition to grow very quickly. and where to spend it what extent we should invest,” points out Niels B. Christiansen. The development funds go to two business area categories: `Core for growth’ and `adjacencies’. In addition to the `core for cash’ areas, there is `core for growth’. These are also areas which are solid market leaders, but which at the same time also contain major growth opportunities due to the fact that the climate agenda will require new and more energyfriendly solutions. Examples are refrigeration valves, balancing valves and frequency converters. Then there are the areas which are defined as `adjacencies’ – business areas in which Danfoss does not play a dominant role today, but where there is a great chance of us ending up playing a major role in the future. These areas include, for example, solar inverters, heat exchangers and heat pumps. Specifically, the `development pie´ will be divided into three parts: the `core for cash’ areas will get nothing, the `core for growth’ will be given two thirds, and the six `adjacencies’ areas will get one third – a very large pool considering their size, but this is also where the biggest expectations for growth are. 72012-03-09T13:19:55+01:00http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2011/GlobalDanfossNo12011/?Page=8http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2011/GlobalDanfossNo12011/?Page=8Core & Clear – Getting basics right oK is not good enough Danfoss must equal ‘world-class quality’. The standard ISO/TS16949 will see to that, and it requires short, clear descriptions of who, what, where, when and how you work at Danfoss – and they must be followed up. According to the customers, the quality of Danfoss’ products is `ok´ and that’s it. This is not good enough, says the top management. Taking control of quality is one of the basic elements of the Core & Clear strategy, so that is why all of the factories and business areas in Danfoss have been asked to live up to ISO/ TS16949 by 2015. It’s the standard that suppliers for the automotive industry must fulfill. The requirements of the automotive industry are considered some of the strictest, which is not so strange when you think of the enormous costs of recalling a series of cars – perhaps because of a banal error in some product from a sub-supplier. That makes you interested in every little detail. ”When I arrived at Danfoss 27 years ago, everybody agreed that Danfoss equalled world-class quality. We cannot live up to that any longer, but we need to regain that position,” says Bendt Jørgensen, the Head of Danfoss Business System, who will have the task of reaching this target, together with the divisions. But why force such strict requirements on a whole range of factories and business areas that will never even get near a car’s exhaust pipe? ”Because many customers expect us to do it. They might live up to the standard themselves and, as a result, they expect Danfoss to do so too. Furthermore, many customers buy products from different Danfoss business areas. They may buy both frequency converters and refrigeration components perhaps and find it difficult to understand why Danfoss doesn’t have the same set of rules across the company. So now we want to be `One Company’ in terms of this too.´ only four factories today And contrary to how it may appear, this is no small undertaking. Today, quality assurance is dealt with in different ways by each part of Danfoss, and only four factories are currently complying with TS16949. Among them is Danfoss Silicon Power, which supplies power modules to the automotive industry, and therefore has had to be certified as a result of a customer requirement. Danfoss Silicon Power obtained the certificate and hung it on the wall in 2006, following nearly two years of preliminary work. The person responsible for quality, Wilfried Jungeblut, estimates that employees in the quality department have invested time equal to a year’s worth of man hours in the certification process. To this should be added the number of hours spent in the different departments, providing a detailed description of all processes; totaling around six months of man hours. However, it should be noted that the company started out at rather a high starting point, dealing with a rather small organization. This reduced the scope of the task. With the ordinary ISO standards, they deal with the question `what´ (meaning, what kind of product do I get), the TS 16949 also answers the question `how´: how do the processes behind the product operate? Each part process must be described and the descriptions must be followed if you want to comply with the standard. At the end of the journey, the factory will have a detailed description of all the products and processes. And the certificate has been a determining factor, emphasizes Claus A. Petersen, the Head of Danfoss Silicon Power. ”Our car customers considered it a requirement but without the certification, it would By NIElS CHr. lArSEN also have been much more difficult to attract the interest of the wind turbine industry, which is a new segment for us.” 82012-03-09T13:19:55+01:00http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2011/GlobalDanfossNo12011/?Page=9http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2011/GlobalDanfossNo12011/?Page=9” Bendt Jørgensen, isn’t ISO/TS16949 a whim; too complex a system for many of our commodity products? Isn’t it overdoing things? “No, it is not overdoing things. It will shift efforts from correcting failures to failure prevention. But we are definitely moving towards a more demanding quality system.” Why do we have to talk about ISO/TS16949 in terms of company sales? Isn’t it related to the products only? “No, it is about a systematic approach and everything we do is process-based, meaning we have inputs and outputs for all processes, regardless of manufacturing or office environment. For example a wrongly invoiced price is poor quality, just like a defective product.”’ How much will it take to reach TS16949 compliance? “A few of our businesses are already TS16949 compliant. However, most Danfoss businesses are somewhere between ISO9001 and TS16949. So considerable work lies ahead before Danfoss overall can be said to comply with TS16949.” facts • In February, a plan must be ready outlining when and how each business area and factory will comply with the standard. • Only the areas supplying the automotive industry can obtain an ISO/TS16949 certificate. Nevertheless, all parts of Danfoss must reach the standard by 2015. 92012-03-09T13:19:55+01:00http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2011/GlobalDanfossNo12011/?Page=10http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2011/GlobalDanfossNo12011/?Page=10Core & Clear – Innovation from the core Jumping the gun with Core & Clear A few sums on a calculator convinced the sales staff at District Energy that further development of an existing product would enable them to capture a new market. In Core & Clear terms, this is called `developing from the core´. The result has contributed more to the division’s earnings than any other product. By OlE KANSTrUP Behind a small cupboard door, a few steps into every apartment in the Søstjernevej apartment complex in Sønderborg, Denmark, ingeniously intertwined tubes and measuring equipment cut around 134 euros from the residents’ hot water and heating bills compared with previously. The savings are primarily a result of the housing association having disposed of up to two kilometers of other tubes, which tap water and shower water used to pass through before reaching the apartments. The apparatus behind the cupboard doors is called a Danfoss Flat Station. And it exemplifies the fact that it is not always necessary to throw millions into the development of a new product in order to conquer a market. Instead, it may be a good idea to look closer at the products you already have – and which you know are working. help from the calculator Back in 2004, Danfoss had a heating solution for houses – a so-called heat exchanger solution, which provides hot tap and shower water. The earnings were good. But, each house only needs one heat exchanger, so the growth possibilities were limited – until the day when some brainy people in the sales department took out the big calculator and analyzed the growth possibilities of applying the solution to apartment blocks. The opportunities were huge, considering that a greater proportion of people are living in apartments than houses. And, discussions with the technicians showed that if a few adjustments were made to the concept, it would be possible to adapt it for use in apartment blocks too. ”It was a clear-cut case that we should go in that direction instead of throwing millions into developing a revolutionary new product and then hoping to generate growth. looking back, we were being Core & Clear, but we did not know this at the time. It was development from the core,” says Business Development Director Hamdi Sarac, who is responsible for the sale of Danfoss’ flat stations. The move has paid off. District Energy is now making more money on flat stations than on other products and reckons that sales will reach 40 million euros by 2015. In 2009, the figure was 6 million euros. This successful achievement is a result of the fact that Danfoss was one of the first on the market to launch the idea and also because of the massive construction of apartment blocks in Eastern and Central Europe, where Danfoss launched the product first. fewer tubes equal savings Seen from the customers’ perspective, the advantage is that the heat exchanger solution – when transferred to apartments – means fewer tubes inside the building. ”This is a fantastically logical way to reconstruct the system. The heat, which does not go to waste in the tube system, turns into cash for the residents,” says Henning Christensen, Works Manager in the craftsman department at Sønderborg Andelsboligforening (cooperative housing association) who has organized the installation of the flat stations in Søstjernevej. 102012-03-09T13:19:55+01:00http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2011/GlobalDanfossNo12011/?Page=11http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2011/GlobalDanfossNo12011/?Page=11This is how it works Previously, the hot tap water was first heated in a tank in the cellar and then transported up through the floors in a tube. But, since several apartments were located up to 200 meters from the tank, it was necessary to have an extra, so-called circulation tube. If the water did not continuously circulate in the system, it became cold before it reached the residents. now, the flat stations are heating the water in each apartment, which makes the tank and the extra tubes wasteful. At the same time, the stations have an integral measuring gauge which provides each resident with an overview of the consumption of tap water and shower water and of the district heating water which heats the radiators. Henning Christensen will not miss the kilometers of tubes which Sønderborg Andelsboligforening is now able to dispose of. 112012-03-09T13:19:55+01:00http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2011/GlobalDanfossNo12011/?Page=12http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2011/GlobalDanfossNo12011/?Page=12Core & Clear – Manufacturing footprint full house in monterrey Minus one. The number of factories was cut by one when Danfoss closed down in Texas. By NIElS CHr. lArSEN Production room availability, experience with the product, reduced salaries and being located close enough for next-day deliveries. There were many things that favored closing down the factory in Buda outside Austin, Texas and moving the production 623 kilometers to Monterrey on the other side of the Mexican border – and in this way, contributing to limiting Danfoss’ `manufacturing footprint’, which is one of the elements of the Core & Clear strategy. This has just happened. At the end of the year, the machines were turned off in Buda – and started up in Monterrey. “It’s been a difficult decision. But we need to build a sustainable business and this can only be done if we optimize our manufacturing footprint,” says Alex Thomsen, the Vice President of Operations in AC. under the same roof Danfoss acquired the factory in Buda four years ago and with it some patents for air-conditioning components. The most important product is the distributor which sends the refrigerant into the system. The factory in Monterrey produces similar products together with the Tr6 valve with which Danfoss has had major success on the American market over the past few years. The valve helps producers of air-conditioning systems meet the new strict demands of energy utilization. It matches exactly the distributors from the factory in Buda, and there are customers who have requested that both Tr6 valve and distributor are assembled on delivery. Now, therefore, both the products will be manufactured under the same roof. And lars Snitkjær, the former plant manager in Buda, can also see several advantages to consolidating production. “We can draw on already established management skills, logistics, supply chain and r&D set-ups, and get more out of these synergies. And because the remaining production facilities are strategically located close to markets, we can still maintain the crucial 24-hour to market supply.” At the same time, he also emphasizes that it was a tough decision to make and that the employees in Buda acted very professionally. The day after the closure announcement was made, production was back to normal and the employees in Buda have loyally trained their Mexican colleagues in the transit phase. “The relocation is a positive move for Danfoss. But we’d like to acknowledge the great effort that the people at Buda have made to make the most out of a difficult situation.” The move also means that spare capacity has been taken up at the Mexican factory – after some years with many square meters vacant. When the crisis was at its highest, there were only 500 employees in Monterrey. This year, 1,000 employees are expected to be employed in the high season. facts • At first, the relocation will result in work for 120 production employees plus 15 technicians and engineers. • Danfoss Mexico is working with Danfoss-Sanhua on a `micro-channel´ production, which is expected to be started in the first six months of 2011. 122012-03-09T13:19:55+01:00http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2011/GlobalDanfossNo12011/?Page=13http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2011/GlobalDanfossNo12011/?Page=13132012-03-09T13:19:55+01:00http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2011/GlobalDanfossNo12011/?Page=14http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2011/GlobalDanfossNo12011/?Page=14Core & Clear – Reducing complexity Half as many products, A pilot project shows that by removing 49 percent of the products and letting wholesalers service more than half of the customers, earnings can be improved significantly. Now, there is a good chance that the method will be implemented throughout Danfoss. By JANUS FlACHS MADSEN Complexity can be costly. In other words: If you manage to reduce the number of products and direct customers using a model by which you evaluate each customer and each product in terms of earnings, there’s money to be made. A lot of money. A project group, set up with exactly the aim of reducing complexity in Danfoss refrigeration & Air Conditioning Controls (rC), completed an extensive pilot project recently. Based on a newly developed model, which gives a better picture of how much each customer and product really costs, they have made a substantial reduction of products and direct customers at Danfoss Industrial refrigeration (Ir). The method is already being rolled out throughout RC. The end result of the pilot project: an increased earnings potential of around 1.3 million euros annually. ”In order to grow, you typically increase the number of products and customers but, at some point, the earnings begin to decline in spite of an increase in net sales. This is caused by increased complexity costs, among other things. The target is to reduce complexity so that the increased net sales once again lead to improved earnings,” says Senior Project Manager Michael Harder rasmussen from Nordborg, Denmark. And the project has had major consequences. The number of direct customers has been reduced by 71%. This is, among other things, a consequence of an analysis which shows that 19% of Ir’s customers represent 97.5% of net sales. The same applies to products. A limited number generate the earnings. Therefore, the number of products has been reduced by 49% and, in addition, the amount of raw materials and the number of suppliers have been cut. 25% of the products were profit-making Before the project began, Ir produced around 10,000 different products, of which 2,500 were making a profit. This does not mean, however, that they have discounted the remaining 7,500 products. ”Of course, there may be good reason to keep a product which does not directly make money. It might have development potential, we could use it to enter a lucrative market, or it could satisfy a key customer,” says Vice President in CC/rC-Gl, Kenneth Bjerregaard, who is heading the project steering group. So, one third of the not so profitable products are still being produced, but a plan has been made to establish how they can make a profit in the future. 142012-03-09T13:19:55+01:00http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2011/GlobalDanfossNo12011/?Page=15http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2011/GlobalDanfossNo12011/?Page=15but a bigger profit “Just as it can be sentimental to give up on a product, it is difficult to make changes to the cooperation with a faithful Danfoss customer. Therefore, the sales staff focus on providing a soft shift from buying directly from Danfoss to buying from a wholesaler,” says Senior Project Manager Michael Harder rasmussen. right now Danfoss Business System is in the process of developing the project model and, it is likely to be applied in other divisions too. In addition to the pilot project, rC has also applied the same model in two other departments, where the same opportunities as those identified in Ir to reduce the number of products have also been found. facts This is how they do it: 1st step: Cleaning up of inactive customers and products which are not selling. Inactive products cost money. If an order arrives for a product after a long inactive period, it is expensive to restart the production. 2nd step: The remaining products and customers are reviewed with razor-sharp focus on profit. Each product and customer is assessed on its related income and expenses. 3rd step: Optimization. loss-making products are phased out when the production and the sales departments agree on this. Or a plan is made as to how the product or the customer can be made profitable. 152012-03-09T13:19:55+01:00http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2011/GlobalDanfossNo12011/?Page=16http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2011/GlobalDanfossNo12011/?Page=16Core & Clear – Reducing complexity Poles work overtime to recrown the king Core & Clear can also hurt. That’s what happened in Poland, when the well-known radiator thermostat was removed from the series. To Danfoss Heating Solutions, it makes sense to have a smaller product series, but it presented the Polish sales staff with a serious challenge. By NIElS CHr. lArSEN The radiator thermostat from Danfoss was king on the Polish market. More than 20 million have been sold, but the royal status dropped a notch when Danfoss Heating Solutions withdrew the well-known radiator thermostat from the market and replaced it by the one known in Western Europe. Combined with a decline in the construction sector, price increases, the devaluation of the Polish currency and the fact that, actually, Polish customers preferred the old design, this resulted in a loss of market share in Poland. ”We saw developments speeding up during the first half-year of 2010 and started to prepare a rescue plan in June which included ten extensive seminars throughout Poland, where we introduced the new electronic radiator thermostats to the customers,” says Dorota Jezierska, regional Sales Director, Danfoss Heating Solutions, in Poland. Kim Christensen, Divisional President of Danfoss Heating Solutions, acknowledges that it can be tricky to strike a balance between customer considerations and demands for less complexity – in the form of a reduced product series. ”A smaller series is beneficial to the company as a whole but difficult to explain to the customer or sales organization which are requesting exactly what we do not want to manufacture anymore. And Core & Clear is about making the right choices.” In the above-mentioned situation, this has meant a halving of stocks, half as many code numbers needing to be maintained and the division being able to concentrate on the development of not two, but a single, strong product series. And when all is said and done, it has increased the bottom-line funds, points out Kim Christensen. At the end of 2010, sales in Poland were still at a lower level than the previous year, but Dorota Jezierska expects the seminars, the intensified marketing and a revised price list to result in the recapture of market share and a 15% higher sales rate. In the fall, Danfoss in Poland carried out well publicized customer meetings in nine selected Polish cities to introduce the electronic radiator thermostats. There were a thousand participants. 162012-03-09T13:19:55+01:00http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2011/GlobalDanfossNo12011/?Page=17http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2011/GlobalDanfossNo12011/?Page=17Better understanding of Core & Clear on the way Many employees have not yet felt the effects of the Core & Clear strategy. When will that happen – and in what way? ”All employees have, of course, heard about Core & Clear, but it is true that not all of them have experienced any direct change in their daily work. Still, quite a few have! But I am very certain that, over the next few months, each will get a better understanding of what Core & Clear means to him or her. This will be because the Perspectives for all the business units are now ready and set for implementation. And the Perspectives are in reality the fulfillment of Core & Clear in a business area or function.” When Core & Clear was presented a year ago, we were told that each one of Danfoss’ products and services would be reviewed to find out whether tasks would be handed over to others. How much is yet to be outsourced – and how many factories will be closed down? ”It’s an easy question to ask, but not so simple to answer! By and large, I am a little disappointed that outsourcing has become a sort of ghost which is brought out each time we talk about Core & Clear. I mean, it is not at all new to many parts of Danfoss that we continuously examine how sub-suppliers could make a better contribution. So, to a large extent, this is the continuation of what we have been doing for a long time. However, it is true that we will continue to take a thorough look at where we would benefit from involving sub-suppliers even more. This is part of the plans for the individual businesses. likewise, it is the individual businesses which are examining whether we have the right number of factories. This is something which has already been extensively dealt with and I do not see that there are any major changes approaching. In any case, those involved will be informed before anything takes place – and that will most likely happen in very good time. There will be more outsourcing and meanwhile, quality needs to be improved. Do we not risk compromising quality if we outsource further? ”There is no doubt that quality is a vital and basic improvement area for us at Danfoss, and that’s why the focus is on quality when and if we choose to place a task with a subsupplier. If the quality is not acceptable, we cannot make any use of the supplier. These two things neither exclude each other nor are they opposites. We must break with the belief that we are in more control of quality than others, because nothing really proves this to be the case! Once we are entirely in control both of quality and the standards we want to adhere to, it will become easier to make up our minds as to whether we should produce a product ourselves or whether we should select a sub-supplier.” Q&A Questions and answers. On this page, in each edition of Global Danfoss, we focus on a central issue. This time, CEO Niels B. Christiansen elaborates on the Core & Clear strategy, a year after it was launched. 172012-03-09T13:19:55+01:00http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2011/GlobalDanfossNo12011/?Page=18http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2011/GlobalDanfossNo12011/?Page=18People cecilia…the perfect link with Refrigeration customers Cecilia Garza, Customer Service responsible, keeps herself busy helping refrigeration National Customers to fulfill their demands. With a smile and a service spirit, Ceci is the link between the refrigeration salespeople in Danfoss Mexico Sales Company and our national refrigeration OEMs, because her job is to help them get their orders through and fulfill their demands. “I am a fan of teamwork because this is a way to make things easier and stronger for everyone. I like to support my colleagues in whatever is necessary to strengthen knowledge in our area, so we are able to render a better service,“ she says. Among other activities, she is also in charge of any issues relating to ISO, and find ways to improve processes. coloured days, grey days Esslingen, at 10 o’clock. Water runs down a wall. rolf Müller wears a protective suit. He points his pistol at a geared motor and shoots. Grey mist comes out. His arm moves rhythmically and soon, the geared motor is spotlessly covered with paint. The water wall behind the drive absorbs the excess levitating coating. The motors are lacquered according to customer wishes. red, green, yellow. Grey is standard. rolf Müller is a professional, a skilled varnisher. He used to paint cars. For more than three years he has `ennobled´ geared motors in Esslingen – from 10 o’clock onwards. no problem, Grzegorz is on his way Where can you buy the cheapest and best spare parts? Where should you take that broken piece of equipment for repair? What is the quickest way to the city center to pick up the plane tickets? Grzegorz Ilski, a driver for Danfoss Poland, is the man to ask. He has been working at Danfoss for 18 years. At 10 o’clock he usually pushes his way through Warsaw traffic jams to take care of all urgent matters. He is always smiling and his good humor is infectious. It’s after 10 o’clock and Grzegorz’s mobile is ringing. It is a Danfoss employee with an urgent request. No problem, Grzegorz is on his way. 182012-03-09T13:19:55+01:00http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2011/GlobalDanfossNo12011/?Page=19http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2011/GlobalDanfossNo12011/?Page=19Eva adjusts the valves in alcohol It’s 10 o’clock in l3 in Nordborg, Denmark, and Eva Christensen is halfway through the work of the day. She recently learned how to change the alcohol bath for the adjustment of the brass T2 valves and now she can do it herself. ”Normally, the alcohol is replaced when needed, but we currently have a lot of reruns so the alcohol becomes more dirty and has to be replaced more often. However, now I know how to do it myself,” she says. She empties the basin of alcohol and wipes it off with a cloth to remove the dirt which has settled in the bottom of the basin. Wang makes things run smoothly Wang Xue hurries around the office premises at the Anshan factory in China. It is 10 o’clock and as usual her colleagues have forgotten to retrieve their express mail at the main entrance. “My colleagues always forget to fetch their express mail even though I have called them in advance. I am afraid it will delay something so at 10 o’clock I take some time to send the mail to their offices or place it on their desks,” says 26-year-old Wang Xue, who has been with Danfoss since 2008. According to her business card she is a receptionist, but this falls too short of what she actually does. In short, she is in contact with a lot of people to make sure that practical things run smoothly at the factory. Working at height In the Danfoss Trata warehouse in Slovenia, employees are always in a rush, since they have to fulfill all production needs. It is 10 o’clock in the morning and Matjaz Pecavar is operating his forklift to fetch materials which are stored 13 meters up in the air. Matjaz Pecavar, still excited about working with heights, says: “Working in a warehouse takes a lot of accuracy in the issuing of goods. When working with heights, it is necessary to be extra careful as it can easily lead to disaster.” Matjaz Pecavar is one of five employees who work with heights in the Danfoss Trata warehouse. 192012-03-09T13:19:55+01:00http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2011/GlobalDanfossNo12011/?Page=20http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2011/GlobalDanfossNo12011/?Page=20Polish proof: Men can also multi-task Seasonal fluctuations are usually difficult to handle in production companies, but the factory outside Warsaw houses several divisions under the same roof and a complete overview of employees who are capable of rotating from one line to another. This leads to higher productivity, prevents dismissals – and results in a little more salary. By NIElS CHr. lArSEN Tomasz Gwardiak has been with Danfoss’ factory in Grodzisk outside the Polish capital for 11 years and over the past ten years he has familiarized himself with a number of the many work stations at the factory. It comes naturally to him to move around between several of them, across divisions and product lines. And Tomasz is not alone in this. 40% of the 700 production employees in Grodzisk have no problem joining other teams. And 20% of them have obtained the maximum competence bonus, and among them is Tomasz. “I have the highest level of competence. Thanks to the competence bonus my salary rate is higher, which has a positive influence on my work satisfaction,” he says. Evening out seasonal fluctuations Many different kinds of production lines have been added to the factory in Grodzisk over the past few years. Now, there are seven value streams distributed across three divisions plus Danfoss Saginomiya, all under the same roof. This makes it possible to accommodate the large seasonal fluctuations which exist between the production lines so much so that, in fact, they complement each other. For example, the high season for heat pumps is in the late summer and fall, whereas the employees are busy producing pressure switches during early spring and summer. ”This is a major advantage for us, because we are able to redeploy people from one part of the production to another, instead of having to dismiss and hire employees,” says Niels Damgaard Hansen, the plant manager. He introduced the competence system. Previously, there was a tendency not to move the best-performing employees to other work 202012-03-09T13:19:55+01:00http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2011/GlobalDanfossNo12011/?Page=21http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2011/GlobalDanfossNo12011/?Page=21facts The salary system is designed to retain focus on the teams’ performances and the team members’ creation of competencies. it consists of: • A basic salary (approx. 75%) • A team performance supplement (approx. 23%), based on productivity and the number of complaints from customers caused by production errors • An individually based competence bonus (approx. 2%) stations – simply because the manager, who was supposed to release them, preferred to keep them on his team, but that did not have an overall positive impact. ”We decided to do something about it. We wanted to form a very flexible group of employees who had been trained in several teams. They would be the most skilled employees who would be able to adapt quickly and acquire the necessary competencies.” An attractive carrot The solution was a systematic mapping of the competencies of all of the production employees, plus the introduction of a bonus which is dependent on these competencies. The bonus amounts to a maximum of 2% of salary, but it is still enough to be an attractive carrot – in addition to the other benefits contained in moving from one work station to another, such as variety of both work and work positions. ”For me the biggest advantage is the variety of work. By moving among teams I can learn something new about production processes and products. Moreover, the competence bonus stimulates me towards the rotation,” says Tomasz Gwardiak. The plant manager knows that not all production employees are as pleased as Tomasz with the rotation scheme – some would prefer to stay at their regular work station and on their usual team. ”But, I think that they have got used to the system, and I have noted that several are focusing on competencies and asking for development opportunities. And we, the management, must be even more conscious about ensuring crossfunctional competencies. This way, we can avoid overtime work and having to dismiss and hire employees.” 212012-03-09T13:19:55+01:00http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2011/GlobalDanfossNo12011/?Page=22http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2011/GlobalDanfossNo12011/?Page=22Have: Millions Want: Foreign applications The Fabrikant Mads Clausen Foundation celebrated its 50th anniversary in December by donating 1.3 million euros. Most of the money was passed on to Danish associations. The foundation is inviting more applications from outside Denmark. By ANDErS MCCUllOCH AND JANUS FlACHS MADSEN 175 applications or around two large binders: when the Fabrikant Mads Clausen Foundation marked its 50th anniversary by donating 1.3 million euros, they had plenty of applicants to choose from. But, only 21 of the applications were from projects outside Denmark. And that’s too small a proportion, says the Chairman of the foundation Peter M. Clausen. ”We were very locally minded in the first 50 years of the foundation’s existence, and even though we have begun to donate more money abroad, we would like to be more global going forward. But we simply need to get more applications,” he says. Out of the 21 foreign applications for the anniversary donations, two received money. One was the rakitna youth Health Center close to ljubljana, Slovenia, which received 67,000 euros for the treatment of children and youngsters with psychological or social problems using so-called equine assisted therapy: a form of therapy where horses are part of the therapeutic work. With the extra money, the center will be able to finish building a riding hall and thereby offer help to more families. 22 “It is often difficult for children to start trusting therapists or to start talking about their problems or fears, but through activities with horses, they open up more easily. By nature, horses are really good in reading our body language and through it they also read how we feel. That makes them such special animals for therapeutic work,” says romana rasperger, Director. The rakitna youth Health Center is a precise example of the fact that there are lots of fine purposes to support worldwide, explains Peter M. Clausen, who also emphasizes the foundation’s tradition of doubling each amount collected by the employees for use in disaster areas. ”But, I hope that the employees can find even more worthwhile projects so that we will have a lot more chances to donate money for charitable purposes in Danfoss’ local communities outside Denmark,” the Chairman encourages.2012-03-09T13:19:55+01:00http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2011/GlobalDanfossNo12011/?Page=23http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2011/GlobalDanfossNo12011/?Page=23Foundation helps Mexican children to a better life The organization Altius Foundacion is successful in helping families from latin American countries and the Philippines out of poverty; giving children and youngsters a solid education with a focus on health and development. In December, one of its 35 so-called Mano Amiga schools received 67,000 euroes from the Fabrikant Mads Clausen Foundation. The school is located on the outskirts of Monterrey, Nuevo león in Mexico, and plans to spend the money on a new roofed sports facility so that the approx. 900 pupils can do sports all year round, while their parents can take part in social events and workshops after school hours. The Mano Amiga concept also aims to help parents build a better way of life. A total of 21,000 pupils attend the organization’s schools and they are located in poor and socially challenged areas. 91% of the schools’ high school pupils continue to further education. facts • The Fabrikant Mads Clausen Foundation was set up on December 24 1960, by Danfoss’ founder, Mads Clausen, after having donated money to associations and organizations for years in the local area around the factory in Nordborg. • Since 1960, a total sum equal to the present value of 47 million euros have been donated. Horses heal traumatized children and youngsters A violent father, the death of a sister or a mother who is chronically ill: children and youngsters at rakitna youth Health Center have such broken lives that they are at risk of developing eating disorders, depression, anxiety or becoming completely withdrawn. And how do you help these children and youngsters? At the Slovenian center close to ljubljana, part of the answer can be found. There, they have developed an expertise in equine assisted therapy. The philosophy which underpins the therapy is that the self-esteem of the young is strengthened when they are given the responsibility for a horse, while being with the horses improves the understanding of their own body – when something feels good or uncomfortable. On the occasion of the anniversary, the center received 67,000 euros from the Fabrikant Mads Clausen Foundation. The donation means that the center is now able to help more children and youngsters let go of their problems. The center is 80 years old and was first set up as a recreational home for children suffering from chronic respiratory diseases. Since 2007, the center has also supported children and youngsters with psychological or social problems. Today, there are 500 children and youngsters at the center every year – 300 receive equine assisted therapy. It is often difficult for children to start trusting therapists or to start talking about their problems or fears, but through activities with horses, they open up more easily. Romana Rasperger ” 232012-03-09T13:19:55+01:00http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2011/GlobalDanfossNo12011/?Page=24http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2011/GlobalDanfossNo12011/?Page=24http://portal.danfoss.net/pages/insite.aspx The Greenland ice sheet is melting – what can we do? Troels h. Petersen, President, Danfoss Power Electronics: recently, I read in the newspaper that more than half of the world’s second-largest ice massif on Greenland is melting. Climate expert Jason E. Box from Byrd Polar research Center at the Ohio State University in the USA states that more of this huge ice cap has melted this year than since 1873. These are scary facts and they give Danfoss’ “Making Modern living Possible” statement a whole new dimension. We will not become the Climate & Energy company over night. It takes time. The marketing departments across Danfoss are working to promote us as the Climate & Energy company; our sales people are also conveying the message to customers; and our r&D engineers are gaining better customer insight with which to develop Climate & Energy solutions. Still I am sure we can do much more. What are your proposals for promoting Danfoss as the Climate & Energy company? We will have to walk the talk so we get it into the DNA of Danfoss and build on the proud legacy. For our r&D we can increase focus on sustainability by adapting lifetime analysis and by adapting cradle to cradle principles. Bring it into decision making. Competencies need to be built up and tested on a small scale first. Make it easy for marketing!! Jamee Devlin: I do not believe that changing our corporate message from “Making Modern living Possible” to “Making Modern living Sustainable” is either unrealistic or radical. I see it instead as a statement from the top that climate and energy focus is a vital part of Danfoss’ corporate strategy and a directive to its employees. We need to encourage employees to think about sustainability in everything we do from how we work, to our office environments, to our product designs. niels bjerregaard: Today, it is no longer a question about possibility. Anybody can make it possible. The real question is: Can you make it sustainable! let us go all in: Danfoss, Making Modern living Sustainable! Troels h. Petersen: you are totally right that Climate and Energy have to become a part of our business culture, i.e. we have to live the sustainability `game´. That is the only way to ensure that we foster the right ideas and attitudes and offerings for our customers. But we should not forget that many of our customers still only appreciate this where there is also an additional monetary incentive. uffe borup: Agree, sustainability is key for future proof solutions in both Climate & Energy. let’s start the transition in mindset and action. It is the journey we HAVE to take and promote. Great business will follow. Promotion of Danfoss as the Climate & Energy company is a fundamental part. But it can not be done by marketing alone.2012-03-09T13:19:55+01:00http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2011/GlobalDanfossNo12011/?Page=25http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2011/GlobalDanfossNo12011/?Page=25By JANUS FlACHS MADSEN New internal bank leads to multi-million euro savings A new IT-based system makes it possible for Danfoss companies to make internal transactions, bypassing banks to transfer payments. Greater security is achieved along with savings of around 4 million euros each year and a reduced risk of errors. A visit to the bank can turn out to be costly. No matter whether you want to make a transfer, use your overdraft account or convert to another currency, you have to pay interest or fees. This also used to be the case for the various Danfoss companies when they traded with each other. The money went from one Danfoss company via the bank to another Danfoss company. And every transaction made money for the bank. This has changed now, with the new Danfoss Internal Bank system (DFIB) from Corporate Treasury, the department which controls Danfoss’ cash flow and lends money for operations in the most appropriate way. The new internal bank has been in operation since the beginning of October. It was set up based on the potential that was identified from a business case around a year ago. ”With an estimated cash flow between the Danfoss companies, which are involved in the project, of at least 2 billion euros a year, we used to spend huge sums paying the banks’ interest and fees. They included interest on overdraft accounts, fees in connection with transfers and currency conversion,” explains Assistant Treasurer Palle Dedenroth. He estimates that Danfoss will now save around 4 million euros annually on the new internal banking system and points out that it will also reduce the risk of errors and misuse. Previously, the accountants in the individual Danfoss companies would check each payment. However, now they only deal with payments which are problematic. made for core & clear The new payment system project was initiated before the launch of Core & Clear, but the new internal bank fits well with Danfoss’ new strategy. ”It is an extra benefit that the system fits in with Core & Clear. There will be one shared way for Danfoss’ companies to transfer money that will bring us closer to the aspiration of becoming ”One Company”. At the same time, we are simplifying the entire payment system and in this way, we achieve reduced complexity,” says Vice President in Group Treasury, Flemming Aaskov Jørgensen. facts • The new system has been developed in cooperation with Global Services and IT. So far, it has been introduced in 75 companies in 36 countries and accounts have been opened in 19 currencies. As of December 6, 148,750 payments had been made since the beginning of October; 214 million euros have been deposited and 362 million euros have been released as loans. • It is only used by the companies which use SAP, are included in the Climate & Energy segment and do not have any currency restrictions. In 2011, the system will be expanded to include external payments. 252012-03-09T13:19:55+01:00http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2011/GlobalDanfossNo12011/?Page=26http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2011/GlobalDanfossNo12011/?Page=26People Ethics Hotline – now you can make contact anonymously In future, if you discover that your manager or colleague is breaking Danfoss’ rules, you can be anonymous when you contact the Ethics Hotline. By ANDErS MCCUllOCH With almost 21,000 employees, you would expect 120 approaches on an annual basis. This is the experience of other companies. But only 16 to 35 actual reports are made annually to Danfoss’ Ethics Hotline. Therefore, it is now possible for employees to contact the Hotline anonymously when they notice their colleague stealing a box of thermostats or they discover that their manager is in the pocket of a subsupplier. ”The low number of reports makes us worried that we are missing decisive cases because employees dare not step forward. We have been told that this is a particular problem in societies with close networks. That is why, from now on, we will allow approaches to be anonymous,” says Corporate Security Officer Ken Blæsbjerg Graversen, who together with Chief reputation Officer Ole Daugbjerg form the group’s Ethics Committee, which investigates cases of employees possibly having violated the rules. The Ethics Hotline is the employees’ chance to report violations of Danfoss’ ethical guidelines without involving their immediate manager – either because they don’t trust their manager or simply because the manager is the one breaking the rules. Since the hotline was set up in 2008, most reports have arrived from sites in Europe. In 2008, 17 out of 24 reports were made by European employees and in many cases concerned theft or conflicts of interest. In 2009, the total number fell to only 16. When the Ethics Hotline was launched, one of the arguments for not allowing anonymous reports was that anonymity could not be guaranteed during the handling of the case. This guarantee has now proven to be feasible. At the same time, there was a fear of false accusations. ”you can never entirely avoid this. But it says in the new Ethics Handbook that there is no reason to worry if you report somebody in good faith. This means, indirectly, that you have every reason to be fearful if you report someone in bad faith. We will not accept that,” emphasizes Ken Blæsbjerg Graversen. facts • rule breaking can be reported to the Ethics Hotline, electronically or via the phone at ethics.danfoss.com • Danfoss’ Ethics Committee also handles a large number of approaches where a manager or an employee seeks answers to questions where they are in doubt. 262012-03-09T13:19:55+01:00http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2011/GlobalDanfossNo12011/?Page=27http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2011/GlobalDanfossNo12011/?Page=27“you guys have lifted the bar” Danfoss makes Russian heating greener russians moving into new buildings will soon pay less for a comfortable living room temperature during the winter and at the same time reduce their overall CO2 footprint. That is the aim of a cooperation agreement Danfoss signed with renova StroyGroup, russia’s largest real estate developer, in October. Danfoss and renova StroyGroup will cooperate to make the russian construction sector use more energy-efficient heating solutions in new building projects. 60 million square meters of new buildings are constructed in russia every year. After more than six months’ hard work, the team VlT® liqCool in December won first place in the Man on the Moon competition with their idea to use refri-gerant instead of air to cool frequency converters. “you guys have lifted the bar,” Danfoss CEO Niels B. Christiansen said on behalf of the jury. The admiration for this year’s finalists in the competition was major. Niels B. Christiansen emphasized the positive development that the teams – as part of their projects – had been good at combining different Danfoss products and products from Danfoss and Sauer-Danfoss too. In this way, they kept to “Innovation from the Core” which is an important element of the Core & Clear strategy. Danfoss A/S Annual General meeting The Danfoss A/S Annual General Meeting takes place on April 29, 2011, at 16:00 hours in the Nordals Idrætscenter, Nordborg, Denmark. clear-cut Solutions There is a huge untapped potential of existing energy-efficient solutions in the fight against climate change, but political action is necessary. This was the message from Danfoss when leading businesses, financiers and governments meet at the World Climate Summit. The summit was held in December in Cancún, Mexico, in connection with the UN’s Climate Change Conference – COP 16. As a main sponsor of the twoday business conference, Danfoss was represented by several speakers. Agenda • • • • The Board’s report on the company’s business during the past year Presentation and approval of the company’s Annual report Decision on use of profit or compensation for losses Election of the Board: all Board members elected by the shareholders’ meeting are up for election • Election of auditor • Submitted proposals • Any proposals from the Board or shareholders. All shareholders can of course ask the Board questions at the Annual General Meeting, but only proposals submitted before March 1, 2011, will be included in the final agenda and will therefore be discussed and decided at the Annual General Meeting. Please send proposals to: The Danfoss A/S Board, c/o Anders Stahlschmidt, Danfoss A/S, A 640, 6430, Nordborg, Denmark. 272012-03-09T13:19:55+01:00http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2011/GlobalDanfossNo12011/?Page=28http://danfoss.ipapercms.dk/Danfoss/Newsletters/GlobalDanfoss/UK/2011/GlobalDanfossNo12011/?Page=28Danfoss around the world Bulgaria The beginning of a new era When Danfoss Heating Solutions’ production in Bulgaria celebrated its 10th anniversary, one of the presents was rather difficult to unwrap: a whole new factory covering 2,400m². Around 35 invited guests celebrated the new premises and the factory in Bulgaria is now employing 76 office workers and hourly-paid workers. As opposed to previously, the production is gathered under the same roof, whereas the factory used to comprise several small buildings. China They will open up the far West Danfoss is already present in a number of major cities in the Western part of China and now a sales office has been opened in the very far West, in Urumqi, the capital of Xinjiang Uygur Autonomous region with a staff of four, at first focusing on heating and power electronic products. In recent years, Xinjiang has experienced an economic boom. Its GDP more than doubled from 2004-2009. Xinjiang is known for its fruits and also has large deposits of minerals and oil. The oil and gas extraction industry is booming, with the West–East Gas Pipeline connecting to Shanghai. Denmark Toolmaker reached 50th anniversary Music, gifts and lots of presents – it was a very special day for toolmaker Gerhard Matzen from Nordborg, Denmark, as he celebrated his 50th anniversary at Danfoss with around 60 family, friends, and colleagues. He is the first blue-collar employee ever to be with Danfoss for so many years. Danfoss President & CEO, Niels B. Christiansen joined the celebrations along with Bitten Clausen, honorary member of the board, and Danfoss Chairman, Jørgen M. Clausen. Gerhard Matzen was presented with The Danish royal reward Medal from Danish Queen Margaret II, and, on top of that, he was invited to meet the Queen. 282012-03-09T13:19:55+01:00