MODINE MANUFACTURING TO EXPAND EUROPE PRODUCTION TO SERVE GROWING HEAT PUMP MARKET

New capacity at existing Serbia location will manufacture coils for commercial and residential heat pump applications.

RACINE, Wis., May 10, 2023 /PRNewswire/ -- Modine Manufacturing Company (NYSE: MOD), a leading manufacturer of heat transfer coils, is expanding operations at its current location in Sremska, Serbia, to meet growing demand from the heat pump market in Europe. When complete later this year, the new facility will be a dedicated manufacturer of coils for commercial and residential heat pump applications.

"We are excited to expand our manufacturing operations in Serbia to serve our key customers in Europe and beyond," said Eric McGinnis, President, Climate Solutions. "The market for heat pumps is experiencing tremendous growth in Europe and we want our manufacturing centers closer to our key customers. Serving them with best-in-class heat transfer technology that reduces energy consumption and lowers harmful emissions is one way Modine lives out our purpose of engineering a cleaner, healthier world."

The heat pump market in Europe is experiencing significant double-digit growth. Government regulation to reduce fossil fuel consumption and greenhouse gas emissions across industries has led to increased policy support and incentives to install heat pumps. The International Energy Agency forecasts that annual heat pump sales in the European Union alone will reach 7 million units by 2030, up from 2 million in 2021.

"The new production facility in Serbia underscores Modine's commitment to providing the highest quality coils to our customers. We look forward to working with our customers and suppliers as we expand our operations in the region," said Modine Mike Postma, Vice President and General Manager, Heat Transfer Products. "At the same time, we are proud to be part of the Serbian business community and excited about the new jobs we are creating."

Modine has decades of experience manufacturing high-quality heat transfer coils for HVAC contractors, integrators, distributors and original equipment manufacturers. Modine Serbia was established in 2014 to manufacture heat transfer coils used primarily in commercial refrigeration and HVAC applications. Over the years the facility received new investment and was expanded in 2019 to support the growing heat pump market. The new facility will be located next to the existing plant.

About Modine
At Modine, we are Engineering a Cleaner, Healthier World™. Building on more than 100 years of excellence in thermal management, we provide trusted systems and solutions that improve air quality and conserve natural resources. More than 11,000 employees are at work in every corner of the globe, delivering the solutions our customers need, where they need them. Our Climate Solutions and Performance Technologies segments support our purpose by improving air quality, reducing energy and water consumption, lowering harmful emissions and enabling cleaner running vehicles and environmentally-friendly refrigerants. Modine is a global company headquartered in Racine, Wisconsin (U.S.), with operations in North America, South America, Europe and Asia. For more information about Modine, visit www.modine.com.

Media Contact: pr@modine.com

Forward-Looking Statements
This press release contains statements, including information about future financial performance and market conditions, accompanied by phrases such as "believes," "estimates," "expects," "plans," "anticipates," "intends," "projects," and other similar "forward-looking" statements, as defined in the Private Securities Litigation Reform Act of 1995. Modine's actual results, performance or achievements may differ materially from those expressed or implied in these statements because of certain risks and uncertainties, including, but not limited to those described under "Risk Factors" in Item 1A of Part I of the Company's Annual Report on Form 10-K for the year ended March 31, 2022 and under Forward-Looking Statements in Item 7 of Part II of that same report and in the Company's Quarterly Report on Form 10-Q for the quarters ended June 30, 2022, September 30, 2022, and December 31, 2022. Other risks and uncertainties include, but are not limited to, the following: the impact of potential adverse developments or disruptions in the global economy and financial markets, including impacts related to inflation, rising energy costs, along with supply chain challenges or supplier constraints, tariffs, sanctions and other trade issues or cross-border trade restrictions; the impact of other economic, social and political conditions, changes and challenges in the markets where we operate and compete, including foreign currency exchange rate fluctuations, increases in interest rates or tightening of the credit markets, recession, restrictions associated with importing and exporting and foreign ownership, public health crises, and the general uncertainties about the impact of regulatory and/or policy changes, including those related to tax and trade, the COVID-19 pandemic, the military conflict in Ukraine and other matters, that have been or may be implemented in the U.S. or abroad; the impact of the COVID-19 pandemic on the national and global economy, our business, suppliers, customers, and employees; the overall health and pricing focus of our customers; our ability to successfully execute our strategic and operational plans, including applying 80/20 principles to our business; our ability to effectively and efficiently modify our cost structure in response to sales volume increases or decreases and complete restructuring activities and realize benefits thereon; our ability to fund our global liquidity requirements efficiently and comply with the financial covenants in our credit agreements; operational inefficiencies as a result of program launches, unexpected volume increases or decreases, and product transfers; the impact on Modine of any significant increases in commodity prices, particularly aluminum, copper, steel and stainless steel (nickel) and other purchased components and related costs, and our ability to adjust product pricing in response to any such increases; the nature of and Modine's significant exposure to the vehicular industry and the dependence of this industry on the health of the economy; our ability to recruit and maintain talent in managerial, leadership, operational and administrative functions and to mitigate increased labor costs; our ability to protect our proprietary information and intellectual property from theft or attack; the impact of any substantial disruption or material breach of our information technology systems; costs and other effects of environmental investigation, remediation or litigation; and other risks and uncertainties identified in our public filings with the U.S. Securities and Exchange Commission.  Forward-looking statements are as of the date of this press release, and we do not assume any obligation to update any forward-looking statements.

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SOURCE Modine Manufacturing Company