TOUGH competition in the refrigeration and freezing appliances market is blamed on Danfoss's decision to move its production of refrigerator and freezer thermostats from Nordborg to its factory in Slovakia. The relocation, which is expected to be completed by the end of this year, will affect around 77 employees, it is said.
'The relocation is a clear consequence of tough competition and major pressure on sales prices, which forces us to constantly reduce manufacturing costs,' claimed appliance controls vice president Mogens Søholm.

'Producing refrigerator and freezer thermostats in Nordborg is loss-making, in spite of the fact that rationalisations have been implemented on an ongoing basis and considerable productivity improvements have been made.

'This situation is not sustainable. We must ensure continuous growth, which will be achieved by having a sound and competitive thermostat business in the future, and that is why we are being forced to take action now. Unfortunately, this means that we will have to close down production in Nordborg and move to an area with reduced manufacturing costs.'