With investments of more than 80 million Brazilian real, Danfoss is boosting its new technologies in Brazil. Specifically, for the food retail business, industrial refrigeration, heavy industry applications, heating and cooling, and beverages manufacturing. It will also include agriculture, construction, the automotive industry, as well as water and wastewater.  

Danfoss, the global industrial Danish-based group, is further strengthening its commitment to be a strong partner for customers in Brazil.

“It’s a real pleasure to be visiting São Paulo to meet customers, our team. (Especially), to see the fruit of our investments. We are investing more than 80 million (Brazilian Real) in our production facilities in Brazil. These investments will enable us to service our customers even better with improved facilities and new, modern machinery and equipment,” said Kim Fausing, President and CEO of Danfoss.

Creates Sustainable Operations

In addition, Fausing said Brazil is Danfoss’ largest market in Latin America. Moreover, an important hub for Danfoss products across the wider region.

“Brazil is an important market for Danfoss. We have many important customers and strategic partnerships. By strengthening our partnerships, we are better positioned to capitalize on the

potential growth and advancements that megatrends are creating in sectors such as energy generation, agriculture, construction, mining, and the food chain. With a skilled and competitive workforce and deep application know-how, we want to drive sustainable innovation to create value for our customers,” said Fausing.

Danfoss Brazil operations began in 1968 in São Paulo when Danfoss first partnered with local company T Janér. The company’s first office opened in 1977 on Avenida Paulista and in 1989 Danfoss began producing solenoid valves and RT thermostats used in heating, ventilation and air conditioning (HVAC) systems, refrigeration, industrial processes and temperature control systems.

Presently, Danfoss’ operations in Brazil consist of more than 800 employees working out of four production facilities situated in Caxias do Sul, Guaratingueta, and Sao Paolo.

The past two years Danfoss Group has witnessed a remarkable 30% growth, about 15% was organic. In addition, the company undertook significant transformations through M&As and organic growth initiatives driven by industry-record investments in innovation, capacity, and digitalization.

Taps Opportunities in Brazil

Meanwhile, in 2023, Danfoss Group continued to make bold investments in expanding the offering of competitive and innovative solutions. Despite a slower growth environment in 2023, Danfoss reported a 10% increase in earnings (EBITA) and a 49% increase in cash flow.

Moreover, in 2023, scope 1 and 2 emissions (before acquisitions) decreased by 18%, decoupled from organic sales growth of 2%.

Julio Molinari, Regional President, Danfoss Latin America, said: “This visit (of company executives) has provided a unique opportunity for them to engage directly with our valued Brazilian customers. Moreover, to have meaningful discussions regarding the exciting opportunities that this market holds for us in the future.”

16 July 2024