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Munters invests 9.5 MUSD in US joint venture and 25 MEUR in Italian plant

Munters Group targets supply chain resilience and capacity growth with a 9.5 MUSD US joint venture for coil production and a 25 MEUR expansion of its Italian chiller factory.

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Munters invests 9.5 MUSD (about 90 MSEK) for a 45% stake in a US joint venture with Lordan to make heat exchanger coils near its Texas data center plant, with production starting in 12-18 months, and separately expands its Italian chiller factory by about 25 MEUR. Both steps secure supply and add capacity against growing demand, but the outlays are small relative to 2025 net sales of about 15 billion SEK, so the effect on near-term results is limited.

Catalysts
  • ▲ Joint venture with Lordan: 9.5 MUSD investment, 45% ownership, 7-year agreement with volume commitments
  • ▲ US coil production in Selma, Texas starting within 12-18 months
Risk Factors
  • ▼ Investments are modest at about 90 MSEK and 25 MEUR versus 15 billion SEK in 2025 net sales
  • ▼ No immediate revenue effect as production starts in 12-18 months

🎯 Key Takeaways

  • Munters invests 9.5 MUSD for a 45% stake in a joint venture with Lordan to produce heat exchanger coils in Selma, Texas.
  • The US joint venture includes a 7-year agreement with volume commitments, with production expected to start within 12-18 months.
  • Munters is investing 25 MEUR to expand its chiller manufacturing facility in northern Italy over the coming year.
  • The investments support Munters' 2025 net sales base of approximately 15 billion SEK by securing supply for products like CRAH units.

📝 Executive Summary

Munters Group is expanding its supply chain and production capacity through a 9.5 MUSD joint venture with Lordan to manufacture heat exchanger coils in Texas. Additionally, the company is investing 25 MEUR to expand its chiller production facility in northern Italy to meet rising European demand. These strategic moves aim to secure critical components and increase manufacturing output over the coming 12-18 months.

❓ FAQ

How much is Munters investing and what does it get?

Munters invests 9.5 MUSD (about 90 MSEK) for a 45% stake in a joint venture with Lordan that will produce heat exchanger coils in the US, plus about 25 MEUR to expand its chiller factory in northern Italy.

When will the new production actually start?

Production of coils at the US facility near Munters' plant in Selma, Texas is expected to start within 12-18 months.