AUSTRIA: US cooling and air conditioning manufacturer Modine is to close its Austrian heat exchanger factory, Modine Gailtal GmbH.

The former Luvata Gailtal business became part of the Modine group last year following the US manufacturer’s purchase of Luvata Heat Transfer Solutions.

Announcing the closure, the company said: “Despite the hard work of the employees and the local management team, it was not possible to bring costs and production into an economically sound relationship with each other, and financial support for the parent company had to be provided.”

Modine admits that the measure is also part of its long-term strategy to reduce excess capacity and and strengthen its production at various plants worldwide.

“Closing a plant is always a difficult decision,” said Dennis Appel, Modine’s vice president, commercial and industrial solutions. “Nevertheless, our growth and diversification strategy remains a key element of our business and we will continue to work to strengthen our businesses by reducing over capacities and concentrating on productions.”

The business generated around €20m in sales per year. The closure of the 24,000m² plant in Kötschach-Mauthen is expected to hit 146 employees and employees.

The history of Modine Gailtal dates back to 1977 with the establishment of ECO Wärmeaustauscher, a subsidiary of the Italian heat exchanger manufacturer. The ECO group became part of Luvata in 2007.

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