All agreed loans

Denmark. Danfoss A/S

Date of loan: 30 Jun 2014
Country: Denmark
Customer: Danfoss A/S
Amount in EUR: EUR 134 million
Maturity: 10 years
NACE sector / loan type: Manufacture of machinery and equipment n.e.c.
Business area: Industries and services

Project

The loan has been provided for financing R&D investments in the climate and energy business segment until 2017.

The R&D investments will be made in Denmark and Sweden. Danfoss’s climate and energy business segment focuses on energy-efficient solutions that save energy and costs and reduce CO2 emissions, such as inverters for solar and wind, control valves, heat pumps, compressors, etc.

Project costs total DKK 2,305 million (EUR 309 million). These investments comprise 37% of group’s total R&D investments. The company employs about 1,500 engineers in R&D, of whom 570 are located in Denmark and Sweden.

Founded in 1933, Danfoss is a supplier of electrical and mechanical solutions used in, for instance, air conditioning, food refrigeration, heating systems, as well as power solutions, such as hydraulic systems and controls used in agricultural machinery and materials handling. The company employs some 22,500 people at its 59 factories in seventeen countries and sales offices in 58 countries.

Fulfilment of NIB's mandate

Competitiveness: The loan supports investments in a solution improving energy efficiency and enhancing performance. Thanks to its R&D spending, the company has strengthened its innovation capacity over the past few years, which is reflected in an increase in product launches and patents filed. The company is part of the Danish Lean Energy Cluster with focus on energy technologies.

Environment: Danfoss has been successful in developing efficient solutions for energy savings in different applications. Solutions for energy efficiency are easy to implement in various sectors. The solutions can be applied in both the existing installations and new constructions.

Sustainability summary

Danfoss’s R&D activities and more energy-efficient solutions have small and insignificant direct negative environmental impacts.