On November 5, 2025, Danfoss celebrated the opening of its expanded Monterrey, Mexico, factory, a decision driven by increased demand for reliable, energy efficient HVAC equipment in the North American and Latin American markets. The expansion is also an important part of Danfoss’ LEAP 2030 strategy, which aims to reduce delivery times and further strengthen supply chains for customers in all markets.
The multi-million-dollar investment doubles production and adds three new product lines to the current facility. The expanded facility will house the production of sensors, microchannel heat exchangers, large and medium scroll compressors, and semi-hermetic BOCK compressors by the beginning of 2026. This will allow Danfoss Climate Solutions to better serve North American customers with shorter supply chains.
Local officials, including the mayor of Apodaca, Cesar Garza Arredondo, and the Ambassador of Denmark to Mexico, Kim Højlund Christensen, as well as valued customers and dedicated Danfoss employees were present when Danfoss CEO Kim Fausing and Kristian Strand, head of Danfoss Climate Solutions, and the rest of Danfoss management, celebrated the milestone with a ribbon-cutting ceremony at the factory. Emmanuel Loo, the acting secretary for economy in the state of Nuevo Leon, gave remarks at the ceremony.
“The expansion of our Monterrey facility reflects our ambition as a part of our LEAP 2030 strategy to be our customers’ preferred technology partner and deliver close to their markets.,” said Kristian Strand, President, Danfoss Climate Solutions. “This strategic investment brings us closer to customers in the U.S. and increases our capacity to quickly meet their needs.”
Strand added, “We have experienced strong double-digit growth in the US market this year and are determined to support our customers’ growth. With the investment in increased production in Mexico, we are in an even stronger position to help them achieve their sustainability goals and create even greater value through close collaboration and increased resilience in the supply chain.”
The LEED Silver-certified factory includes a newly expanded compressor laboratory that has doubled in size from 500 square meters to 1,000 square meters. It also houses two new calorimeters to validate performance up to 175 kW (50 tons), ensuring reliable testing even for the most demanding applications. Four advanced Life-Test systems further guarantee long-term compressor reliability across a wide range of capacities and a UL-certified Burst Test system underscores our commitment to the highest standards of safety. Most importantly, the facility is future-ready – equipped to support the production of next-generation scroll compressors and designed to grow alongside our customers’ evolving needs.
The expansion coincides with the 30th anniversary of production for Danfoss Mexico and represents the fourth expansion at the site since its inception. The Monterrey location is a major hub for Danfoss, employing over 1,400 people.
The new production area will add about 300 new full-time positions, further strengthening Danfoss’ commitment to Mexico as a key manufacturing hub.
FACTS ABOUT DANFOSS MEXICO:
- Danfoss has six production sites in Mexico: Monterrey, Queretaro, and Reynosa across the company’s three divisions
- Total footprint 170,000 sq. meters
- All factories in Mexico are strategically located to ensure geographic diversity and close proximity to the North American market.
- Danfoss has invested $100 million in Mexico over the past four years
- The production expansions reflect the four distinct dimensions of resilience identified in U.S. Trade Policy for Supply Chain Resilience: sustainability, security, diversity, and transparency.
- Total number of Danfoss employees in Mexico: 3,000
