Modine to Open Additional UK Facility to Meet Data Center Market Demand

Rhea-AI Summary

Modine, a leader in thermal management technologies, announced the purchase of a manufacturing site in Bradford, UK, to expand production of precision cooling equipment for data centers. The new facility will increase overall production capability by 150% and include a state-of-the-art test center. This move aims to meet the growing demand for data center cooling equipment globally.

Positive

• Expansion of production capability by 150% to meet growing demand for precision cooling equipment in data centers.

• Addition of a state-of-the-art test center at the Bradford facility to enhance research and development capabilities.

• Strategic location in Bradford, UK, to serve key customers in Europe and beyond, strengthening the company's global presence.

Negative

• None.

The new site in Bradford, West Yorkshire, will produce precision cooling equipment under the Airedale by Modine™ brand and comes on the heels of expansion in Calgary, Canada, and Allen, Texas.

RACINE, Wis., May 7, 2024 /PRNewswire/ -- Modine (NYSE: MOD), a diversified leader in thermal management technologies and solutions, announced the purchase of a 14.6 acre manufacturing site in Bradford, UK, to support increased production of Airedale by Modine™ precision cooling equipment used in the data center industry. The purchase follows recent expansion in Calgary, Canada, to manufacture cooling equipment for hyperscale customers in North America, and a new facility in Allen, Texas, to develop liquid immersion cooling technologies.

"We are excited to expand our manufacturing operations in the UK to serve our key customers in Europe and beyond," said Adrian Trevelyan, Managing Director, Data Centers, EMEA. "The market for data center cooling equipment is experiencing rapid growth. Having available plant capacity is crucial as data center operators look to secure production slots in advance to support their growth. We are pleased with the positive signals from our customers about our expanded capacity."

The Bradford purchase includes 29,000m²  (312,000ft²) of existing manufacturing space that will be used for manufacturing and testing computer room air handlers and fan walls, as well as offices and warehouses. The first Airedale by Modine units are expected out of Bradford by the end of 2024. The existing facility in Leeds, UK, will focus on chiller production. Between the two sites, overall production capability is expected to increase 150%.

In addition to increased production capability, the development of a state-of-the-art, 2MW test center at Bradford will be a centerpiece of the new site. This investment in R&D will expand Airedale by Modine's world-class testing capabilities and increase overall capacity for R&D testing and customer witness tests.

With the new site in Bradford, Airedale by Modine is able to serve global customers with precision cooling equipment, systems and technologies from Leeds and Consett in the UK; Rockbridge, VA, Grenada, MS and Allen, TX, in the U.S.; Calgary, Canada; and Guadalajara, Spain.

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.

Investor Contact: Kathleen Powers; kathleen.t.powers@modine.com; (262) 636-1687
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, 2023 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, 2023 and September 30, 2023. 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, energy costs, 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 or recovery therefrom, restrictions associated with importing and exporting and foreign ownership, public health crises, and the general uncertainties, including the impact on demand for our products and the markets we serve from regulatory and/or policy changes that have been or may be implemented in the U.S. or abroad, including those related to tax and trade, climate change, COVID-19 or future public health threats, and military conflicts, including the current conflicts in Ukraine and in the Middle East and the recent attacks on shipping vessels in the Red Sea; the overall health and pricing focus of our customers, including any lingering impacts associated with the now settled United Auto Workers union strikes; our ability to successfully realize anticipated benefits, including improved profit margins and cash flow, from our strategic initiatives and our application of 80/20 principles across our businesses; our ability to be at the forefront of technological advances and the impacts of any changes in the adoption rate of technologies that we expect to drive sales growth; our ability to accelerate growth organically and through acquisitions and successfully integrate acquired businesses; our ability to effectively and efficiently manage our operations in response to sales volume changes, including maintaining adequate production capacity to meet demand in our growing businesses while also completing restructuring activities and realizing benefits thereof; 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 product or program launches, unexpected volume increases or decreases, product transfers and warranty claims; 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; 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 the increasing emphasis on environmental, social and corporate governance matters; our ability to realize the benefits of deferred tax assets; 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

FAQ

What did Modine announce regarding a new facility in the UK?

Modine announced the purchase of a manufacturing site in Bradford, UK, to increase production of precision cooling equipment for data centers.

What are the primary products to be manufactured at the new Bradford facility?

The new Bradford facility will manufacture computer room air handlers, fan walls, and other precision cooling equipment.

When are the first units expected to be produced at the Bradford facility?

The first Airedale by Modine units are expected to be produced at the Bradford facility by the end of 2024.

How will the new facility benefit Modine's customers?

The new facility will increase overall production capability by 150% to better meet the growing demand for precision cooling equipment in data centers.