Danfoss, the Danish family-owned engineering group, is celebrating 25 years of operations in Türkiye by reinforcing its commitment to decarbonization and green growth with solutions that increase machine productivity, reduce emissions, lower energy consumption, and enable electrification.
Kim Fausing, President and CEO, and Astrid Mozes, President of Regions, joined Ziad Al Bawaliz, Regional President, Danfoss Türkiye, Middle East & Africa, regional and local management teams, as well as customers and partners at a special anniversary celebration event in Istanbul.
Over the past 5 years, Danfoss’ Türkiye’s business has grown by triple-digit figures, shaped by megatrends including climate change, urbanization, water and food supply, digitalization, and electrification. The local strategy is aligned with Danfoss’ global green growth strategy which has a key sustainability goal of becoming our customers’ preferred decarbonization partner.
The past two years Danfoss Group has witnessed a remarkable 30% growth, 15% of which was organic, alongside significant transformations through M&As, as well as organic growth initiatives driven by industry-record investments in innovation, capacity, and digitalization. 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. In 2023, scope 1 and 2 emissions (before acquisitions) decreased by 18%, decoupled from organic sales growth of 2%.
Speaking on the occasion of Danfoss Türkiye’s 25 years of operations, Kim Fausing, President and CEO, Danfoss, said: “I am delighted to be in Istanbul celebrating 25 years of operations in Türkiye. Our purpose at Danfoss is to build a better future and we are proud to be a part of Türkiye’s decarbonization, energy efficiency, and sustainability journey. With a skilled and competitive workforce and deep application know-how, we drive sustainable innovation to create value for our customers. Providing ready sustainable solutions, Danfoss Türkiye is set to help the country to reach its decarbonization goals of achieving carbon neutrality by 2053.”
Danfoss’ Türkiye operations started initially in 1998 with the opening of a liaison office to support local customers, before expanding to include a sales office from 2003, focusing initially on our heating and drives businesses. Over the subsequent years, the business has expanded to include all three of Danfoss’ business segments: Danfoss Climate Solutions, Danfoss Power Solutions, and Danfoss Power Electronics and Drives.
Danfoss’ operations in Türkiye today continue to grow and today consist of more than 2000 employees, working out of 4 production sites which produce for both local and global markets and 2 sales offices, generating an annual turnover of more than €300 million in 2023.
Kim Fausing added: “The triple-digit growth in the local business is testament to the high quality of our products and the significant shift towards solutions that increase energy efficiency and lower emissions. Türkiye is a very key market in the region, being ranked sixth in Europe's electricity sector, fourth in geothermal energy capacity globally, first in agriculture production in Europe, and tenth globally. It boasts a fast-growing economy, offering dynamic business opportunities, facilitating trade and market expansion.”
Ziad Al Bawaliz, Regional President, Danfoss Türkiye, Middle East & Africa, said: “Our commitment to engineering a sustainable tomorrow is visible in some of the most prominent landmarks in Türkiye. For example, Istanbul Airport, where we have installed over 2,000 frequency converters, saves around 500 tons of CO2 emissions annually, demonstrating that our products are more relevant than ever. Danfoss' partnership with the city of Soma has also led to significant benefits, including an annual CO2 reduction of 29,205 tons and a 66% cost and energy saving for citizens. By replacing individual boilers with district heating, air pollution has decreased, and a reliable system ensures continuous comfort.”
Mert Kalafatoğlu, General Manager, Danfoss Türkiye said: “We are very proud of all that we have achieved in Türkiye in the past 25 years and that is thanks to our highly engaged teams and our strong collaboration with customers and partners across the country. We remain focused on serving and delivering our innovative solutions to the Turkish market as our customers’ preferred decarbonization partner.”
Aron Bensason, Vice President, Private Label & SEL Hose Business Unit, Danfoss Power Solutions said: "Since integrating Polimer Kauçuk/Eaton Hydraulics with Danfoss in Türkiye we have retained our position as a market leader, while also benefiting greatly from being part of a global industrial company that has the hydraulics business central to its growth strategy. Danfoss has one of the world’s largest hose production facilities in Çerkezköy and our new integrated business has enhanced our offerings for customers and partners with Danfoss investing in our engineering expertise, production capabilities, and R&D activities.”
