Munters is shutting down data center operations in EMEA

Swedish air conditioning and climate control specialist Munters will be winding down its data center business in EMEA, and is planning to close a specialized factory in Dison, Belgium. According to local publication RTBF, 216 jobs are under threat.
The restructuring plan was revealed in 2018 financial results, published last week.
The decision follows a difficult quarter for the company: despite a high number of orders in 2017 (including one for SEK 450m), the data center division reported a significant loss for the last three months of 2018.
As a result, Munters will take a write-down of SEK 323 million ($34.66m) related to its data center operations.
The company’s entire range of data center products will remain available in North America.
No longer with us
Munters has been developing solutions for air treatment since 1955. The company is active in the food, pharmaceutical, electronics, agriculture and mission-critical infrastructure sectors, and is majority owned by Nordic Capital.
After a disappointing year, Munters is embarking on a major restructuring initiative that will see its data center business considerably reduced in size. The three-phase plan was one of the first decisions to be announced under the interim president and CEO, Johan Ek.
In December, concerned about the group’s financial performance, Munters’ board of directors decided that it was time for his predecessor, John Peter Leesi, who took the company public in 2017, to leave. There were also major changes made to the board itself.
“The fourth quarter performance was characterized by encouraging trends in many of our activities, but also ongoing disappointments in the data center business,” Ek said in a statement.
“Data centers continued its negative trend, reporting a significant loss in the quarter, mainly derived in the European business. The continued losses in data centers, as well as the group earnings for full year 2018 being at the same level as last year, are unsatisfying.” He added that the problems seemed to be caused by tight margins, rather than slow sales growth.
Besides writing off SEK 323 million directly, Munters will also spend approximately SEK 350 million ($37.55m) to restructure its business and close the factory in Belgium.
The company is also investigating alternative options, including partnerships and divestiture of assets; any job cuts or facility closures will be subject to consultation with the relevant employee representative bodies, i.e. Belgian unions.
Munters will continue to sell data center products in the US and Canada, and operate its data center and air treatment equipment factory in Buena Vista, Virginia. However, the data center division will not keep its independence, and will be integrated into the Air Treatment business unit during the first quarter of 2019.
“Our analysis of our data centers operations has convinced the board of directors and the management team, that the prospects for establishing a profitable data center business in Europe are limited in a market with overcapacity and ongoing price pressure. Our focus going forward will mainly be on the US data center market where we have a more commercially viable base for achieving profitable growth,” detailed the earnings report.
"Munters’ move may come as a surprise after a year of strong deliveries including a hyperscale facility, but it’s a decision of an astute management,” Daniel Bizo, principal analyst for Data Center Services & Infrastructure at 451 Research, told DCD.
“The fact that mature technology and a long list of customers, some of them major operators, is not enough to succeed shows the cruel reality all makers of data center equipment must face. As the structure of demand changes from many customers to a handful of massive and demanding buyers, price pressure and the financial difference between hits and misses will only get worse.
“Further consolidation and the need to share design and manufacturing across product lines and even industries seem to be an inevitable consequence."
source datacenterdynamics
Industry: Data Centre News

Latest Jobs
-
- Network Security Engineer
- Germany
- €550 a day
-
German- based contract opportunity This is an onsite based position, we would need the Network Security engineer to be able to work on the client site 5 days a week Seeking an experienced Network Security Engineer for a leading technology company. Strong expertise in firewall/IPS solutions, proxy solutions, and certificate management is required. Good hands-on experience in networking and web-related technologies necessary. Strong problem-solving skills and the ability to work under pressure are essential. we are looking for a Network Security Engineer with the following experience: · Expertise in Administration, Management & Troubleshooting of Firewall / IPS solutions / Proxy solutions/Certificate Management Solutions · Good Hands-on Experience on security devices (PaloAlto/ /McAfee Proxy/CISCO ISE/Certificate Management) · Good Hands-on Experience in Networking with skills of switching, routing & wireless Technologies · Familiarity with web related technologies (Web applications, Web Services, Service Oriented Architectures) and of network/web related protocol · Configuration of NAT / PAT, firewall policies, profiling, objects, AD-Integration, backup – restore · Knowledge of Subnetting TCP/IP Communication, VLSM Configuration of VLAN VTP · Configuration of Routing Protocols e.g. RIPv1 & v2, OSPF, EIGRP, BGP Knowledge of standard and extended ACL 12 month contract
-
- IAM Consultant
- N/A
- Upto £110,000 depending on level of position
-
Identity Access Management (IAM) Consultant Location: Germany We are seeking an experienced IAM consultants in Germany. we are looking for people from consultant through to Architect, The ideal candidate will have previous IAM deployment experience and be fluent in German. Key responsibilities: Design and implement IAM solutions for clients Provide expertise on industry best practices and standards Troubleshoot and resolve IAM-related issues Work closely with clients to understand their business requirements and provide solutions to meet those needs Qualifications: Previous deployment experience with IAM solutions Fluency in German Strong understanding of IAM technologies and principles Excellent communication and project management skills If you are an experienced IAM consultant with a strong track record of delivering successful projects, please apply today.
-
- ForgeRock Consultant
- Spain
- Upto €85000 plus benefits
-
ForgeRock deployment consultant is needed for this expanding IT Services business within Spain, to act as their ForgeRock technical lead, Responsibilities include: High level and low level design, Scoping the techical needs of the project design, configure, develop and test the forgeRock deployment. We are looking for a strong IAM consultant ideally with ForgeRock experience, Must have strong Oauth 2.0, SAML and API experience
-
- IAM Consultant
- France
- Upto €85000 plus benefits
-
An Identity & Access Management Consultant is needed for an expanding IT Security consultancy, based in France. (Remote role with monthly office meet-ups) The Identity & Access Management Consultant will be responsible for the technical design and implementation of Identity & Access Management/IAM products for a wide variety of clients. Deliver bespoke end-to-end consultancy service to our clients, from gathering requirements through to implementation. Work in a close team designing, developing, and implementing first-class IAM solutions. Manage client relationships, working closely with key stakeholders to continually evaluate business requirements and ensure the highest quality solution delivery. If you are interested we are looking for an individual with Previous experience working within the IAM or CIAM field is essential, Strong knowledge with SAML and Oauth and ideally OpenID Previous experience from any of these technologies: One Identity, SailPoint, Saviynt, Ubisecure, Ping Identity, would be advantageous