Arkansas plant to close, Danfoss says; 170 workers to lose jobs

Danfoss Commercial Compressors will close its plant in Arkadelphia by the end of the year, with 170 employees losing their jobs, the company said Tuesday.

The plant manufactures small-capacity scroll compressors, condensing units and high-pressure pumps.

Denmark-based Danfoss cited a "year-over-year decline in demand" for the compressors, Noel Ryan, the company's president, said in a news release. The company's U.S. operations are based in Baltimore.

"We are working with our employees to provide the best possible outplacement support," Ryan said. "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 bought the plant in 2006 from Scroll Technologies Inc. The Arkadelphia facility had about 700 employees at the time. It has been operating since the early 1990s.

The company in January 2009 announced that 100 workers would lose their jobs, also because of slowing demand for the compressors. A company official said then that the plant was capable of producing 30,000 compressors per month but that sales had dropped to as low as 17,000 compressors per month.

Business on 01/22/2020

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