The Danfoss Group has announced the full acquisition of Artemis Intelligent Power Ltd (AIP), an R&D and engineering company based in Edinburgh, Scotland specialising in hydraulic system development. The acquisition is a crucial component of Danfoss’ plans to roll out its innovative Digital Displacement technology worldwide.
Danfoss previously announced the acquisition of the majority shares of AIP in October 2018, at that time creating a joint venture with Mitsubishi Heavy Industries with Danfoss serving as the majority shareholder. With today’s announcement, AIP completely joins the Danfoss Power Solutions organisation.
With the acquisition complete, approximately 60 employees will join Danfoss’ Digital Displacement team effective immediately. The AIP brand will be formally retired, with all products now branded in the marketplace as Danfoss Digital Displacement.
Commenting on the acquisition, Danfoss Power Solutions’ vice president of R&D Jeff Herrin said:
“Digital Displacement is a disruptive technology which radically increases efficiency and lowers fuel consumption wherever hydraulic fluid power is required. It has global potential to reduce CO2 emissions in industrial and off-highway machinery. The technology is particularly appealing to customers because it improves efficiency, productivity and control, plus reduces fuel consumption in sectors that are technically challenging to decarbonise. This is particularly pertinent as this year’s COP26 conference, being held in Scotland, will explore possible routes to a zero-carbon future.
“The last few years have further strengthened our confidence in Digital Displacement, enabling us to produce our first commercial solutions and engage with OEMs in Europe, China and the U.S. – with feedback being universally positive. The full acquisition of AIP will allow us to accelerate the adoption of Digital Displacement technology in our core industrial and off-highway markets. We’re now looking forward to fast-tracking the commercialisation of this technology in a new family of hydraulic solutions.”
In 2018, Danfoss commenced a £22 million (US$30 million) project to develop low-carbon, off-highway machinery, a scheme co-funded by the UK Government’s Advanced Propulsion Centre. Danfoss will make a further announcement on plans to create a global centre of excellence in Edinburgh later this year.
Eric Bretey, director, digital displacement for Danfoss Power Solutions, added:
“Digitalisation is a key driver in our industry, and Digital Displacement strategically fits with our ambition for the sustainable transformation of tomorrow. Digital Displacement technology provides us with a competitive advantage when it comes to developing innovative green products and systems and bringing these to market.”
“A core group of AIP Directors will now form part of our Digital Displacement leadership team, where their incredible experience and agile mindset will offer continuity to the business. All the staff joining us are very welcome additions to the Danfoss family.”
Neither parties have disclosed the purchase price or other conditions of the acquisition.