Danfoss announces closure to Arkadelphia factory by end of 2020, 170 employees to be furloughed

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ARKADELPHIA, Ark.- Danfoss announced Tuesday it plans to close its Arkadelphia compressor factory by the end of 2020.

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

According to the company, approximately 170 employees will be impacted by the closing.

Officials say the closing is due to a year-over-year decline in demand for small capacity scroll compressors.

“Globally, we have seen declining demand for small capacity scroll compressors,” says Noel Ryan, President of Danfoss Commercial Compressors.

The company says 170 employees will be furloughed by the end of 2020.

“We are working with our employees to provide the best possible outplacement support,” Ryan says. “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.”

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