Annual Report 2006 - Munters

HumiCool DivisionCost-efficient and environmentally friendlycooling, heating and cleaningHumiCool creates the right indoor climate for people, animals and industrial processes. Thetechnical solutions are primarily based on evaporative cooling, nature’s own method of cooling.This makes Munters’ solutions energy-saving and environmentally friendly, which is an importantprerequisite, and also guarantees sustainable development. Munters has a strong position throughits role as a pioneer in evaporative cooling. HumiCool’s competitive advantages include a broadproduct portfolio, substantial application expertise and a global presence.Services and offeringsThe Division is divided into four business areas, AgHort(Agriculture & Horticulture), ME (Mist Elimination), HVAC(Heating, Ventilation and Air Conditioning) and GTEC (GasTurbine Evaporative Cooling). AgHort supplies systems forcooling, humidification and ventilation of buildings for livestockbreeding and for greenhouses. ME manufactures componentscalled mist eliminators primarily for flue-gas cleaningsystems for coal-fired power plants. HVAC supplies productsfor the control of indoor climates. GTEC manufactures aircooling products for gas turbines. The Division has productionfacilities in the US, Germany, Italy, Japan, Thailand,Australia, China, South Africa, Brazil and Mexico.CUSTOMER CASEMore efficient energy production with coolingIn 2006, Munters delivered six large Gas TurbineEvaporative Cooling systems as part of an upgradeproject at one of the largest power plants in thePhilippines. The assignment included projectmanagement and installation and testing of thecooling system. With more efficient and stablecooling of the intake air in the gas turbines, plantcapacity has now increased by 5 percent. For theend user, First Gas Power Corporation, this willtranslate into increased revenue, with the investmentin the cooling system having paid for itself inless than a year.Munters’ technology in the AgHort, HVAC and GTEC businessareas is based on evaporative cooling. Put simply, thismeans that air is cooled by evaporating water. Warm, dry airpasses through Munters’ special CELdek® or GLASdek® coolingpads, which are sprayed with water. As the air passes overthe pads, the water evaporates, making the air cool and moist.This cooling technology, which is based on Munters’ owninventions, offers low operating costs and is environmentallyfriendly. Within ME, the technology is based on mechanicalseparation of water droplets. This technology is used forflue-gas cleaning to remove water droplets created duringthe cleaning process.Customers and marketThe total market for HumiCool is estimated to have anannual value of SEK 11 billion. Munters’ current market shareis approximately 15 percent. However, in the cooling pad andlivestock enclosure fans product areas and flue-gas cleaning,its market share is significantly higher.AgHort accounted for almost half of sales at HumiCoolin 2006. Poultry and livestock breeding customers dominatein this segment. In warm climates, cooling of indoor air isrequired in livestock breeding to achieve satisfactory productivity,and for customers in the AgHort sector, cost-efficiencyis decisive. Munters’ evaporative cooling systems providethe most cost-efficient cooling, compared with alternativetechnologies. The largest markets are the US, the MiddleEast, Italy and Thailand. The other major segment withinAgHort is cooling systems for greenhouses, with the countriesof Southern Europe as the largest markets.Munters supplies its systems to manufacturers of breedinghouses, and also directly to breeders, as well as sellingcomponents to system integrators. Demand is determined byconsumption patterns for poultry, as well as global technicaldevelopment in breeding, with developing countries increasinglymoving toward more advanced production. Largercustomers include such companies as GSI and Big Dutchman.Competitors are primarily local players with small-scaleproduction.Mist Elimination, accounted for one-third of HumiCool’ssales in 2006. The dominant customer segment consists ofcoal-fired power plants, where Munters droplet separators are26 M U N T E R S A N N U A L R E P O R T 2 0 0 6