Annual Report 2006 - Munters

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 Munters’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 Munters 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. Munters’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. Munters 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 2006. 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. Munters’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 Munters 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. Munters 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 Munters dehumidification productsand systems is estimated at approximately SEK 11 billion.Munters 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 Muntersdehumidification 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