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Danfoss.com Thermostat production moves to Slovakia(27 May 2005)

Tough competition in the refrigeration and freezing appliances market is forcing Danfoss to move its production of refrigerator and freezer thermostats from Nordborg to Danfoss' factory in Slovakia. The relocation, which is expected to be completed by the end of 2005, will affect around 77 employees.

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Today, Danfoss Appliance Controls is the world's leading manufacturer of thermostats for refrigeration and freezing appliances and has production facilities in Mexico, Brazil, China and Italy, in addition to the factory in Denmark.

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"We will of course do whatever possible to help people find new jobs, and that is why a job office will be established in cooperation with the personnel function (IS-H). The office will be set up shortly after the summer holiday," says Mr Søholm.

This event cannot be accommodated within Ricardo's theory. Under Ricardo's theory, Danfoss would use its capital and labour in Denmark to produce something else which can be exported to Slovakia, and some Slovak company would export thermostats to Denmark. Instead, what is happening is that Danfoss moves its capital to Slovakia, and its employees have to look for other jobs in Denmark without the benefit of Danfoss' capital also staying in Denmark chasing after labour. I suppose Danfoss' 77 employees could move to Slovakia to work for Danfoss there. I wonder how many of them would relocate to slovakia with a Slovak salary and benefits, if offered the chance. And this is within the European Union. There is no free movement of persons from Europe to China.

Bush is a symptom, not the disease.
by Carrie (migeru at eurotrib dot com) on Sun May 13th, 2007 at 08:46:19 AM EST
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