by Tyler Hale
An Arkadelphia compressor factory is slated to close by the end of 2020.
Danfoss Scroll Technologies, which produces scroll compressors, condensing units and pumps, is being shut down this year, impacting approximately 170 employees.
Noel Ryan, president of Danfoss, attributes the closing to the lack of global demand for the factory’s product. “Globally, we have seen declining demand for small capacity scroll compressors,” he said in a statement.
Lisa Tryson, director of corporate communications and public relations for Danfoss, says that the move is also reflective of technology shifts in the industry toward lower-cost alternatives.
“It’s a technology shift to a low cost alternative that the market has seen globally as well as here in the U.S. It’s simply a matter that we don’t have critical scale here at the Arkadelphia-based factory. So, there will be 170 employees that will be unfortunately impacted by the end of the year.
The impact from the closing is expected to be absorbed through consolidation among Danfoss’ scroll compressors factories. Tryson says the company will continue to provide scroll compressor manufacturing but with a smaller footprint.
“We’re going to be consolidating other factories so we’re committed, of course, that we deliver to our customers the same level of quality and service. We don’t see it having a broader impact on the organization. What we’re really doing is consolidating our manufacturing footprint,” she says.
“We are working with our employees to provide the best possible outplacement support,” Ryan says. “The decision is no way a reflection of the efforts and commitment of our valued Arkadelphia workforce. Quite the contrary, our employees have demonstrated a tremendous work ethic and high performance. Instead, the decision is based on need to optimize the business to meet the current market conditions.”
Danfoss has scroll compressor manufacturing facilities in Reyrieux, France and Wuqing, China.
The headquarters Danfoss Commercial Compressors is located in Reyrieux, France. The Denmark-founded company has condensing units manufacturing factories in Sao Paulo, Brazil and in Apocada, Mexico. It also has a Turbocor Compressor Manufacturing facility in Tallahassee, Fla.
Company officials say that they are working with local officials to ensure that the factory employees will receive job placement services.
“We’re working together with the local authorities and organizations to try to ensure that we’ve got outplacement services support for them,” Tryson says. “This is a very difficult decision for us and we really want to do everything we can to support employees and community.
“We are working with our employees to provide the best possible outplacement support,” Ryan says. “The decision is no way a reflection of the efforts and commitment of our valued Arkadelphia workforce. Quite the contrary, our employees have demonstrated a tremendous work ethic and high performance. Instead, the decision is based on need to optimize the business to meet the current market conditions.”
Danfoss acquired Scroll Technologies in August 2006. Scroll Technologies, which operated the Arkadelphia plant, reportedly had 750 employees at the time of the company’s sale. In 2007, Danfoss announced its intention to integrate its commercial compressors facilities in Lawrencille, Ga. with its Arkadelphia operations. According to reporting in Contracting Business.com, the integration was designed to improve customer service and performance.
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Image courtesy of Danfoss