Modine Opens New Facility in Calgary to Support Growing Data Center Demand

Rhea-AI Summary

Modine (NYSE: MOD) announced the opening of a new 23,200m² facility in Calgary, Canada, dedicated to manufacturing Airedale by Modine™ precision cooling equipment for data center customers, particularly in the hyperscale market. Following the acquisition of Scott Springfield Manufacturing in February and the recent opening of a facility in Bradford, UK, this expansion strengthens Modine's global manufacturing footprint, which includes facilities in Spain, the UK, and the U.S. The first units from the Calgary facility are expected to be delivered by the end of 2024.

Positive

• Expansion of manufacturing capacity with new 23,200m² facility
• Strategic acquisition and integration of Scott Springfield Manufacturing
• Global manufacturing presence strengthened across multiple countries
• Entry into growing hyperscale data center market

Negative

• None.

The facility manufactures air handling units for the hyperscale market

RACINE, Wis., Oct. 28, 2024 /PRNewswire/ -- Modine (NYSE: MOD), a diversified global leader in thermal management technology and solutions, today announced the opening of a new 23,200m² (~250,000ft²) facility in Calgary, Canada. The facility will manufacture Airedale by Modine™ precision cooling equipment to meet the increased demand from data center customers, particularly in the hyperscale market.

"We are excited to open this new facility in Calgary in support of our global expansion strategy," said Eric McGinnis, President, Climate Solutions. "Following the recent announcement of the opening of our facility in Bradford, UK, we are well-positioned to serve data center customers worldwide. With the full range of Airedale by Modine technologies, customers have a one-stop shop for mission-critical cooling solutions."

Modine acquired Canada-based Scott Springfield Manufacturing in February and promptly broke ground on a third facility to manufacture advanced air handling units for hyperscale data center customers under the Airedale by Modine brand. This new facility expands Modine's ability to provide customers with cooling equipment from a global manufacturing footprint that includes facilities in Spain, the UK, and the U.S. The first Airedale by Modine units from the new Calgary facility are expected to be delivered by the end of 2024.

"Earlier this year, Modine committed to expanding capacity and driving growth in the data center equipment market," said Javier Vazquez, General Manager. "It's impressive to see such a quick operational turnaround from the planning stages to execution and setup of the new facility. The team involved did an amazing job to get us to this point."

Watch a video of the new facility or learn more at Scott Springfield by Modine.

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
(262) 636-1687
kathleen.t.powers@modine.com

Media Contacts:

Canada: SMacDuff@scottspringfield.ca
US: 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, 2024 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 quarter ended June 30, 2024. 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, logistical disruptions, 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, changes in interest rates, 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, public health threats, and military conflicts, including the current conflicts in Ukraine and in the Middle East and heightened tensions in the Red Sea; the overall health and pricing focus of our customers; 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 ("IT") systems; the impact of a material weakness identified in our internal controls related to IT system access in Europe on our financial reporting process; 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 release, and we do not assume any obligation to update any forward-looking statements.

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SOURCE Modine

FAQ

When will Modine's (MOD) new Calgary facility deliver its first cooling units?

The first Airedale by Modine units from the new Calgary facility are expected to be delivered by the end of 2024.

How large is Modine's (MOD) new Calgary facility?

The new facility in Calgary is 23,200m² (approximately 250,000ft²) in size.

When did Modine (MOD) acquire Scott Springfield Manufacturing?

Modine acquired Scott Springfield Manufacturing in February 2024.

Where are Modine's (MOD) global manufacturing facilities located?

Modine has manufacturing facilities in Calgary (Canada), Bradford (UK), Spain, and the United States.