Danfoss to close Eden Prairie plant, ending decades of hydraulics innovation at site

Danfoss, the Danish engineering company that acquired Eaton Hydraulics nearly four years ago, plans to close its Eden Prairie plant by the end of 2025, displacing 110 workers and shifting some operations to its Plymouth facility.

The company’s plans were outlined in a Jan. 24 WARN (Worker Adjustment and Retraining Notification) Act filingwith the Minnesota Department of Employment and Economic Development. The notice states that the layoffs – 89 hourly and 21 salaried positions – will occur in phases beginning in March and continuing through December 2025.

For decades, the site along Technology Drive has been a defining fixture in Eden Prairie, with its towering water tower serving as a landmark for passing motorists. The facility’s history dates back to 1965, when it was home to Char-Lynn Co., a pioneering hydraulics firm founded by inventor Lynn “Buck” Charlson. It later became Eaton Hydraulics, a major force in mobile and industrial hydraulic systems, before Danfoss acquired it in a $3.3 billion deal finalized in August 2021.

Regulatory impact and company restructuring

The transition is part of a company-wide restructuring following the acquisition, which was subject to regulatory requirements from the European Commission and the U.S. Department of Justice.

Lindsay Schleisman, head of global public relations for Danfoss, explained that the company was required to divest certain product lines as part of the acquisition, leading to a significant loss of production at the Eden Prairie site.

“As part of Danfoss’ acquisition of Eaton Hydraulics, the European Commission and U.S. Department of Justice required the divestiture of certain product lines to grant regulatory approval for the transaction,” Schleisman said. “This mandate eliminated a significant portion of the business that had been manufactured at the Eden Prairie plant. This loss of production has significantly impacted the long-term sustainability of this facility.”

Danfoss said it will shift production activities from the Eden Prairie plant to other locations, while distribution operations will be transferred to a third-party logistics provider.

“This decision follows careful evaluation of our operations and will enable us to synergize our manufacturing locations to better serve the evolving needs of our customers,” the company said.

Danfoss will relocate employees from its Lone Oak (administrative) and Tech Center (engineering) buildings in Eden Prairie to its Plymouth facility, consolidating operations to create a Minneapolis campus focused on engineering and innovation.

City leaders react: ‘The presence of Danfoss will be missed’

Eden Prairie officials met with Danfoss representatives this week as the company formally relayed its plans to close the plant.

“No decisions have been made about the future of its Eden Prairie property,” said Julie Klima, the city’s community development director. “Unfortunately, this closure will result in the loss of approximately 100 jobs.”

Klima acknowledged the company’s longstanding impact on the community.

“Danfoss (formerly Eaton) has been an integral part of the Eden Prairie community since 1965. The company played a significant role in the local economy by creating jobs, supporting community initiatives, and contributing to the vibrancy of Eden Prairie,” she said.

While the site’s future remains unclear, Klima stressed that Danfoss’ contributions to the city will not be forgotten.

“The presence of Danfoss will be missed, and the city appreciates the positive impact its leadership and employees have made over the years,” Klima said.

Mayor Ron Case said the news, while not entirely unexpected, was still disappointing.

“We had heard some rumors – maybe a year or two ago – that Danfoss was considering restructuring its worldwide operations,” Case said. “But yes, I was surprised to learn they are completely moving their hydraulics division out of the city.”

He acknowledged that many in the community already felt a sense of loss when Eaton was acquired by Danfoss.

“Eaton Corp. was such a landmark here in Eden Prairie for so long that, honestly, part of the sadness came when the name changed from Eaton to Danfoss,” Case said. “There was already a little bit of grieving then, and now, with them leaving completely, it really feels like the closing of a chapter – which is always difficult.”

Despite the loss, Case said Eden Prairie’s business climate remains strong.

“We have a robust business community, and while we do have some vacant buildings, it’s not to the extent that some of our neighboring cities are experiencing,” he said. “There are shifting dynamics in the corporate world, and many cities across the country will be dealing with an influx of vacant office and industrial spaces in the coming years. Fortunately, I believe Eden Prairie is well-positioned to manage these changes.”

‘It’s certainly not the news I wanted to hear’

Pat MulQueeny, president of the Eden Prairie Chamber of Commerce, acknowledged the broader impact of the plant’s closure.

“It’s certainly not the news I wanted to hear,” MulQueeny said. “(This facility) has been a significant stakeholder in Eden Prairie for over 60 years. Their presence here has been iconic, even having their own water tower that everyone recognizes.”

He emphasized that manufacturing jobs like those at Danfoss are difficult to replace.

“The vacancy will present opportunities, but it’s difficult to predict what will happen next,” he said. “Ideally, another manufacturer could utilize the space, but there are no guarantees.”

Still, he acknowledged Danfoss’ efforts to transition employees.

“It’s disappointing to see such a longstanding company leave,” he said. “On the plus side, it seems like Danfoss has a thoughtful plan to relocate employees and minimize disruption for their staff. If additional resources or assistance are needed during the transition, we’re ready to help.”

What happens to the Danfoss Eden Prairie facility?

Danfoss has not yet determined the future of its Eden Prairie property, Schleisman said.

“We continue to evaluate the next steps for the Eden Prairie facilities,” she said. “We will keep community leaders updated as plans progress and details are finalized.”

MulQueeny said the site’s prime location makes it a valuable asset.

“That facility is in a prime location, so we’ll start looking toward the future and exploring opportunities to bring in a new business that can make the most of it,” he said.

A legacy that began with an inventor

The Danfoss closure ends a nearly 60-year chapter of hydraulic innovation in Eden Prairie, one that began with Char-Lynn Co. and its founder, Lynn “Buck” Charlson.

Charlson’s company grew into a global powerhouse in hydraulics, eventually catching the attention of Eaton Corporation, which acquired it in 1970. Eaton ran the plant for decades before selling its hydraulics division to Danfoss in 2021.

The site played a role in groundbreaking developments in hydraulic power. A self-taught engineer, Charlson revolutionized the field with his patented Orbit Power principle, which became an industry standard.

Charlson’s legacy remains visible in Eden Prairie – Charlson Road, near Flying Cloud Airport, bears his name.

After selling Char-Lynn, he spent the next three decades immersed in scientific research, funding projects from his office overlooking Lake Zumbra in Excelsior. Even in his 90s, he remained deeply engaged in what he called “new science” projects.

“So it’s better to work than to give up as long as there is an opportunity there,” he said during an interview in January 2004, several months before his death. “That’s what has kept me going.”