Market news, 17 July 2024
Munters European Data Centers operations will make a provision for additional non-recurring costs of estimated SEKm 116 in the third quarter 2019 related to the closure of the Data Center factory in Dison, Belgium. The estimated costs are incurred due to certain specified components, for a previously sold customized Munters solution, having to be replaced at a specific customer’s sites.
As announced previously and as part of the Munters Full Potential Program, Munters is in the process of closing its European Data Centers factory. In relation to the closure process, specified components, for a previously sold customized Munters solution, have to be replaced at a specific customer’s sites. As a result of this, Munters will make a provision for an estimated non-recurring cost of SEKm 116 in the third quarter 2019. The estimated non-recurring cost of SEKm 116 is in addition to the previously communicated total cost for the Munters Full Potential Program.
Munters has insurance solutions in place for this type of events, but since Munters has not concluded the discussions with the relevant customer and its insurance providers, the financial and cash flow net effect on Munters cannot yet be finally determined. This is expected to be concluded during the coming months.
The pending closure of Munters European Data Centers factory is part of Munters three-phase Full Potential Program, announced in February 2019, to improve Group performance and earnings. This process to close the factory was decided in the third quarter 2019 and is on-going.
