Munters Group today announced it has entered into an agreement with Lordan, a producer of high-quality fin and tube heat exchangers, to establish a joint venture for coil manufacturing in the US. The company also said it plans to expand its facility for chiller production in Italy.
US joint venture
Munters will invest MUSD 9.5 (approximately MSEK 90) and hold 45% in the joint venture company, with Lordan holding the remaining 55%. The joint venture will now proceed to establish a facility for coil manufacturing near Munters Data Center Technologies' facility in Selma, Texas. Production is expected to begin in 12-18 months.
"Coils are a critical component in many of our cooling products. Through this collaboration with a well-established expert in heat exchangers, we are ensuring a flexible supply of high-quality coils and related components for products such as CRAHs and fan walls," says Frank Pellegrino, President of Munters business area Data Center Technologies.
"The proximity to our existing facility is an added benefit from an efficiency and environmental perspective, and we're excited about the potential for this joint venture to contribute to our in-house expertise around thermal management and heat exchange," adds Pellegrino.
The agreement with Lordan is valid for seven years and includes commitments from the parties to produce and acquire a certain quantity of coils over that period, at preferred lead times and price levels. Lordan will be responsible for day-to-day operations at the facility while Munters will contribute with supply chain and staffing resources.
Italy expansion
Munters has also decided to expand its existing facility in northern Italy for manufacturing of chillers, to better meet growing demand in Europe for these products. The company is acquiring an adjoining site and will over the course of the coming year develop new production lines, R&D capabilities and testing facilities. The total investment is estimated at around MEUR 25 million.
"This investment signifies our commitment to growing chiller capacity for Europe, as well as the importance of our Italian operations as a hub for expertise in this area," Pellegrino said.