Munters invests in US coil manufacturing and Italian chiller capacity
Munters is investing in its data center cooling supply chain through a new US coil manufacturing joint venture with Lordan and an expansion of its chiller facility in northern Italy. The investments are intended to increase production capacity and support demand in the US and Europe.
- Munters will invest MUSD 9.5 in a US coil manufacturing joint venture.
- Lordan will own 55% of the Texas joint venture and manage day-to-day operations.
- Production at the Texas facility is expected to begin in 12-18 months.
- Munters estimates its Italian chiller facility expansion at around MEUR 25.
- The Italy project will add production lines, R&D capabilities and testing facilities.
Joint venture will manufacture coils in Texas
Munters has entered into an agreement with Lordan, a producer of fin and tube heat exchangers, to establish a joint venture for coil manufacturing in the US. Munters will invest MUSD 9.5, approximately MSEK 90, and hold 45% of the joint venture. Lordan will hold the remaining 55%.
The partners will establish the manufacturing facility near Munters Data Center Technologies' existing facility in Selma, Texas. Production is expected to begin in 12-18 months. Lordan will manage the facility's day-to-day operations, while Munters will provide supply chain and staffing resources.
The agreement is valid for seven years. It includes commitments by both parties to produce and acquire a certain quantity of coils during that period, with preferred lead times and price levels.
Coils support Munters cooling products
Munters said coils are a critical component in many of its cooling products, including CRAHs and fan walls. Frank Pellegrino, president of Munters business area Data Center Technologies, said the partnership is intended to provide a flexible supply of high-quality coils and related components.
According to Munters, locating the new operation close to its Selma facility could provide efficiency and environmental benefits. Pellegrino also said the joint venture could contribute to the company's in-house expertise in thermal management and heat exchange.
The arrangement gives the partners a defined manufacturing and purchasing framework for coils, while allowing Lordan to lead local operations. Munters described the supply agreement as part of its effort to strengthen the data center supply chain.
Italy site to add chiller lines and testing facilities
Munters also plans to expand its existing chiller manufacturing facility in northern Italy. The company is acquiring an adjoining site and will develop new production lines, research and development capabilities, and testing facilities over the course of the coming year.
The total investment in the Italian expansion is estimated at around MEUR 25. Munters said the project is intended to help meet growing demand in Europe for its chillers. Pellegrino described the investment as a commitment to increasing chiller capacity for Europe and to the role of the Italian operations as a hub for expertise in this area.
Together, the two projects target different parts of Munters' data center cooling operations. The Texas joint venture is expected to add a local source for coils, while the Italian expansion will increase chiller manufacturing and related development and testing capabilities in Europe. The source does not provide a total capacity figure for either project.