A journey through Nilan’s history

VPC: A forward-thinking solution in a challenged housing market

A historic building boom
The housing boom of the 1960s and 1970s was far more intense than today’s construction activity. Driven by housing shortages, economic growth, and industrialisation of the building sector, up to 20,000 houses were built annually. By the late 1970s, Nilan had become a major supplier to three large Danish housing companies: Hosby Huse, Hellebo Huse and Høm Huse, all known for their robust prefabricated houses. Nilan’s solutions – including the VGU, VPL and VP18, which are still known today – met the housing market’s growing needs for energy and ventilation.

Time for a new invention
Torben Andersen realised that the building boom could not continue unchanged. There was a growing demand for a new invention to replace oil-fired boilers in existing houses, particularly in light of soaring oil prices. This led to the development of the VPC, a revolutionary solution that provided ventilation, hot water, and central heating.

To deliver central heating, a heat exchanger had to be integrated, and the system required a larger compressor than earlier solutions. The technology behind the heat production was indirect solar energy, extracted from the warm air in the roof space and throughout the house. The VPC had no outdoor unit – the only visible exterior sign was a louvre in the outer wall or on the roof. Indoors, the VPC replaced the old boiler and required no additional space.

Photo: Arkiv.dk, Press Photographer Torben Glyum, Vejle Amts Folkeblad, 1981

The system was tested by the Danish Technological Institute and ready for the market in 1979. By 1981, however, rising interest rates slowed new construction dramatically. The number of new prefabricated houses fell sharply as interest rates climbed above 21 percent. To promote and expand the use of the VPC, Nilan entered into a partnership with Louis Poulsen, whose extensive experience and resources helped market and sell the system. A skilled and dedicated installer, Jørgen Bjeld, also played a key role in raising awareness of the VPC locally. Louis Poulsen organised large meetings at Hotel Australia in Vejle, where the many advantages of the VPC were presented. Jørgen Bjeld, who had installed numerous systems, shared his hands-on experience with fellow installers.

Over the years, the VPC proved itself as a reliable alternative to other heating sources. The technology and innovation behind the VPC later became the foundation for the first Nilan Compact units, launched in 2004 and today sold worldwide.

International expansion and new facilities
At the same time, Torben Andersen was eager to explore new markets abroad. In the early 1980s, Nilan expanded into Finland, Austria, and Canada. In 1981, a new factory was built in Hedensted, and by January 1982 the assembly department had moved from Vejle to the new site – where Nilan is still headquartered today. Only the tank production remained in Vejle, as pressure from licensees Elektro Standard and BP to increase output prevented relocation of the large enamel oven. It was not until 1987, in connection with a factory expansion and investment in new machinery, that tank production was also moved.