RACINE, Wis.–(BUSINESS WIRE)–Modine Manufacturing Company (NYSE:MOD), a diversified global leader in thermal management technology and solutions, announced today it has been awarded programs from Hyundai Heavy Industries Co., Ltd. of Ulsan, South Korea, to supply air conditioning systems for all the 9-Series Excavators in Korea and China, and the engine cooling module for the 9-Series R1400W Excavator in Korea. The combined programs are valued at $60 million, with production expected to begin in mid 2008 and extend for at least five years.
The air conditioning systems and the engine cooling module will be manufactured at the Modine facilities in Asan City, South Korea and Shanghai, China, leveraging engineering and testing capabilities in Korea for product development. The contract award exemplifies the company objective of global diversification with the expansion into other markets in Asia. The new Hyundai business also supports the company’s five-year annual organic growth objective of four to six percent and the overall revenue growth goal, including acquisitions, of 9 to 13 percent.
“This win gives us a strong position in the passenger thermal management market for Hyundai Heavy Industries as it is the next generation of the current 7-Series Excavators,” said Jerry Retallick, Managing Director of Modine Asia. “We have made significant progress in building a long-term relationship with this important customer and we are expanding powertrain cooling module sales for the next generation of their products.”
Founded in 1916, with fiscal 2007 revenues from continuing operations of $1.8 billion, Modine specializes in thermal management systems and components, bringing highly engineered heating and cooling technology and solutions to diversified global markets. Modine products are used in light, medium and heavy-duty vehicles, HVAC equipment, industrial equipment, refrigeration systems, fuel cells and electronics. Based in Racine, Wisconsin, the company has approximately 7,700 employees at 34 facilities in 15 countries worldwide. For information about Modine, visit www.modine.com.
Forward Looking Statement
Statements made in this press release regarding future matters are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements, including those regarding a positive impact from new business programs, exploitation of technology, expansion into niche markets, incremental business and continuing market strength are based on Modine’s current expectations. 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, market acceptance and demand for products and technologies; successful launch by Modine of the above described program; success of the above described platform in which Modine’s products are included; non-cancellation of the platform or Modine as a supplier; the ability of Modine, its customers and suppliers to achieve projected sales and production levels and avoid unanticipated product or manufacturing difficulties; and other factors affecting Modine’s business prospects discussed in filings made by Modine, from time to time, with the SEC including the factors discussed in Item 1A, Risk Factors, and the “Cautionary Factors” section in Item 7 of the Company’s most recent Annual Report on Form 10-K and its periodic reports on Form 10-Q. We undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise.