Trends were extremely positive during 2007. We reported record earnings for the fourth quarter and the full-year. I am particularly pleased that we have now developed global product platforms, which will be highly significant for our ability to reduce costs. The acquisition of Des Champs was successful and in 2008, we will launch a number of key products that are based on a combination of the Munters and Des Champs technologies.
- Mike McDonald, Division President
The Dehumidification Division offers products and complete solutions for controlling humidity in the air and improving the quality of indoor air.
A strong customer focus, combined with Munters’ internationally recognized brand, advanced technological expertise and global presence, gives the Division a strong competitive advantage. Western Europe and the US are its largest geographic markets. Manufacturing is conducted at plants in Sweden, US, Brazil, Japan and China.
The Dehumidification Division consists of three business areas:
The common denominator for all three business areas is that they provide customers with products and solutions to improve indoor air quality using the most energy-efficient technology available. The main technology used is based on the Munters dehumidifier rotor, which is designed to absorb humidity.
Industrial Dehumidification
This is the largest business area and accounts for approximately 70 percent of the Division’s sales. The business area offers air treatment and control for industrial processes.
Key market segments are the food and pharmaceutical industries, while the aftermarket accounts for 20 percent of sales. Humidity can have a very adverse effect on food quality in the production, handling and storage phases. The Munters dehumidification system enables producers to control humidity at the desired levels, making it possible to control the formation of frost and ice during the production process.
Customers are increasingly adopting a life cycle cost perspective when investing in new systems, and therefore appreciate the energy conservation benefits of Industrial Dehumidification products. Moreover, the globalization trend has led to customers demanding global partners, of which Munters is one of very few.
Commercial Dehumidification
The business area specializes in humidity and temperature controls for commercial spaces such as supermarkets, schools, restaurants and hospitals.
Supermarkets are the single largest segment, of which Wal-Mart is the largest customer. Traditional air-conditioning systems do not reduce the relative humidity of the supplied air. On the contrary: when the air is cooled, the relative humidity increases. This results in a humid indoor climate, which in turn leads to mold and bacteria growth.
As in Industrial’s operations, customers in this segment focus increasingly on energy conservation and life cycle costs. The new third generation Munters Humidity Control Unit (HCU) allows for separate controls of temperature and humidity, with market-leading energy efficiency.
Zeol
The Zeol systems are similar to the dehumidification systems. The main customer segment is the semiconductor industry and automotive paint shops. Exhaust air regulatory changes, as well as growing requirements for improved indoor air quality, is driving demand for Zeol’s products.