Danfoss refrigeration and motion systems announces it will relocate its Industrial Refrigeration final assembly and warehouse operations from Mexico to Morrison, TN, later this year.

The move is part of a strategy to re-engineer the Industrial Refrigeration supply chain to a new flexible operation with final assembly of products closer to the market to accommodate growth and better serve Danfoss customers. Relocating to the company’s existing Tennessee facilities puts important operations in closer proximity to end-users of Danfoss products, while taking advantage of expanded warehouse facilities. This move from Mexico will also allow for increase capacity within Mexico for their other production lines of txv’s filter driers, condensing units, distributors, and newly added micro channel heat exchangers.

“This new supply chain strategy will increase production and inventory flexibility, reduce lead times, eliminate delays and complexities associated with border crossing, and reduce air freight costs,” explained Jim Hower, national sales manager, Danfoss North America. “In addition, we anticipate improved product quality, the result of our new lean final assembly configurator, which facilitates expanded production of more components in a controlled quality environment.”

Hower serves on a transition team that will manage the planned relocation, which will take place within 2012. Dual production and inventory will take overlap for approximately six months through the middle of the year with Industrial operations closing in Mexico by year end.

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