Dehumidification DivisionIncreased demand for environmentallyfriendly solutionsThe Dehumidification Division offers products and complete solutions for controlling humidity in theair and improving the quality of indoor air. A strong customer focus, combined with <strong>Munters</strong>’internationally recognized brand, advanced technological expertise and global presence, gives theDivision a strong competitive advantage. Western Europe and the US are its largest geographicmarkets. Manufacturing is conducted at plants in Sweden, US, Brazil, Japan and China.Services and offeringsThe Dehumidification Division consists of three businessareas: Industrial Dehumidification, Commercial Dehumidificationand Zeol. The common denominator for all threebusiness areas is that they provide customers with productsand solutions to improve indoor air quality using the mostenergy-efficient technology available. The main technologyused is based on the <strong>Munters</strong> dehumidifier rotor, which isdesigned to absorb humidity.In many industries, indoor climate control is fundamentalto the entire manufacturing process. It involves increasing theCUSTOMER CASEsafety and quality of manufactured products and is also abouthealth and productivity in the workplace. In warm climates,small changes in humidity and temperature can lead to thegrowth of mold and bacteria. Precise control of humidity levelsis therefore critical. In commercial premises, the solution isoften to cool down the air with the help of an air-conditioningsystem, which requires large amounts of energy. <strong>Munters</strong>’solution benefits from the fact that less cooling is requiredwhen the humidity level is simultaneously reduced, resultingin lower energy consumption.Rising energy prices, along with demands from both thegeneral public and regulatory institutions for more environmentallyfriendly processes, have made energy conservationthe highest priority. <strong>Munters</strong> Dehumidification Divisionhas the most energy-efficient products on the market and, asthe technology leader, it continually strives to improve theenvironmental sustainability features of all its products. Partof this focus involves a new patented technology called PowerPurge, which achieved a breakthrough during <strong>2006</strong>. Thetechnology can reduce the energy consumption of a dehumidificationsystem by up to 40 percent.DesiCool saves energy using nature’s own methodNature’s own method for dehumidification and coolingair is through the evaporation of water. <strong>Munters</strong>’system for cooling air, DesiCool, is based on thesame principle, although cooling is done moreefficiently by using waste heat from the cooling systemas energy for the dehumidifier function. DesiCooltherefore has significantly lower energy consumptionand environmental impact than competing systems.When Sandvik Wernshausen, a world-leadingmanufacturer of tools and machines evaluated variousair conditioning systems for their new facility inGermany, they found that <strong>Munters</strong> offered the mostreliable, economic and environmentally friendly solution.An analysis by independent consultants showed that,among other things, annual energy costs for theDesiCool system were 45 percent lower than forcompeting systems. <strong>Munters</strong> has now installed sixDesiCool systems there, with each system providing airconditioning for a 10,000 m 2 production facility.Customers and marketThe global market value for <strong>Munters</strong> dehumidification productsand systems is estimated at approximately SEK 11 billion.<strong>Munters</strong> total market share is approximately 15 percent.Within rotor-based dehumidification, it holds a 50 percentmarket share.Industrial Dehumidification is the largest business areaand accounts for approximately 70 percent of the Division’ssales. The business area offers air treatment and control forindustrial processes. Key market segments are the food andpharmaceutical industries, while the aftermarket accounts for20 percent of sales.Humidity can have a very adverse effect on food qualityin the production, handling and storage phases. The <strong>Munters</strong>dehumidification system enables producers to control humidityat the desired levels, making it possible to control theformation of frost and ice during the production process.Customers are increasingly adopting a life cycle costperspective when investing in new systems, and thereforeappreciate the energy conservation benefits of IndustrialDehumidification products. Moreover, the globalization trendhas led to customers demanding global partners, of which14 M U N T E R S A N N U A L R E P O R T 2 0 0 6
“In many instances, <strong>Munters</strong> has the mostenergy-efficient products on the marketand, as the technology leader, it continuouslystrives to improve the environmentalsustainability features of all its products.”<strong>Munters</strong> is one of very few in a fragmented industry. Thecompetition primarily consists of small companies that operatein their own local market or in specific customer segments.Customers include global companies such as Pfizer, Nestléand General Electric.Operations at Industrial Dehumidification during the yearfocused on further developing the modular product platformsthat serve as the foundation of the <strong>Munters</strong> dehumidifierrange. Based on these platforms, cost-efficient products aredeveloped, providing economies of scale and the ability toadapt to the particular requirements of customers. The mostimportant modular products are the Integrated CustomAirhandler (ICA) platform, which consists of large industrialsystems, and which accounts for one-third of the sales volumeamong industrial customers in the American market.Commercial Dehumidification specializes in humidity andtemperature controls for commercial spaces such as supermarkets,schools, restaurants and hospitals. Supermarkets are the singlelargest segment, of which Wal-Mart is the largest customer.Traditional air-conditioning systems do not reduce the relativehumidity of the supplied air. On the contrary: when the air iscooled, the relative humidity increases. This results in a humidindoor climate, which in turn leads to mold and bacteria growth.As in Industrial’s operations, customers in this segmentfocus increasingly on energy conservation and life cycle costs.Traditional HVAC suppliers compete primarily on low initialinvestment costs, but with higher operating cost solutions than<strong>Munters</strong>’ systems. The new third generation <strong>Munters</strong> HumidityControl Unit (HCU) allows for separate controls of temperatureand humidity, with market-leading energy efficiency.CUSTOMER CASECleaner environment and reduced energyconsumption with PowerPurgeTownsends, Inc. is one of the largest producers of chickenmeat in the United States. The requirement for a dry,bacteria-free work environment is very important, withfrequent inspections by regulatory agencies. The companyhad been experiencing problems with condensationbuildup in their facilities. The condensation was formed byexcess fluids from the daily disinfections as well as moistair from air intakes and vents. Up to 20 employees spentevery night drying down ceilings, walls and equipment.The solution was to install <strong>Munters</strong> CondensationControl System (CCS). The system was equipped with<strong>Munters</strong> latest innovation, PowerPurge, which recoverswaste heat from dehumidification. Using PowerPurge,energy consumption is reduced by as much as 40 percent,while retaining the same efficiency.For Townsends, Inc. the plant’s condensation problemhas been significantly reduced. Ceilings stay dry and the littlecondensation that needs to be dried off manually is handledby just a few employees. As a result, the work environmentis cleaner, productivity has improved, and energy costs arelower.M U N T E R S A N N U A L R E P O R T 2 0 0 6 15