Press release:
Danfoss and hp-TECHNIK establish oil pump joint venture

Danfoss has entered into an agreement with the German company hp-Technik to set-up a joint venture which will include the production and marketing of oil pumps for commercial and industrial oil burners.

Both Danfoss and hp-Technik have been producing and marketing an oil pump series for the industrial sector. However, since the market is not expected to expand over the next years, the two companies have decided to make a joint effort to make sure that the market continues to be supplied with large oil pumps.

hp-Technik is based in Karlsruhe, Germany, and has already established a solid position within the industry through the past decades.

With the agreement, hp-Technik will take over the production and marketing of Danfoss Burner Components’ range of industrial oil pumps, type KS. Subsequently, Danfoss will be a minority shareholder in HP-Technik, whose management will remain unchanged.

The six Danfoss employees who currently deal with the production of large oil pumps in Nordborg will be transferred to other responsibilities in Danfoss Burner Components.

Danfoss’ remaining series of components for oil burners, including oil pumps for small oil burners, are not affected by this agreement.

”The market is consolidating and we are taking the necessary steps. Danfoss Burner Components will continue to focus on playing a key role within our core products and retaining our lead in the market. The agreement with hp-Technik is yet another measure to secure a stable market,” says Henrik Henriksen, Senior Vice President of Danfoss Burner Components.

For further information:

Henrik Henriksen, Senior Vice President, Danfoss Burner Components, tlf. 7488 3190

Nikolaj Stig Nielsen, Senior Communications Advisor, Heating Division, tlf. 2374 10 71, e-mail: nsn@danfoss.com