LU-VE Group's international development plan continues in strategic areas and is strengthened in China and the United States. The Italian multinational based in the province of Varese, listed on Euronext Star and one of the world's largest operators in the field of air heat exchangers, announces that it has signed an agreement with the Tianmen Prefecture (Hubei Province, China) for the expansion of the LU-VE Tianmen production plant, which will go from the current surface of 19,000 m2 to a total area of over 43,000 m2, of which 6,640 m2 is semi-covered area dedicated to the storage of finished products.
The agreement is valid for ten years and provides for investments by the Government for the expansion of the LU-VE Tianmen plant, as part of the "Belt and Road Initiative" project which has the dual objective of connecting China to Europe and attracting investments from foreign companies in the interior and west of the country. LU-VE Tianmen will benefit from tax relief, incentives for staff training and favorable conditions for the renegotiation of rent and energy costs. It will also have access to an additional 1,000 m2 of office space and will benefit from a 36,000 m2 photovoltaic panel system to support the production plant. The expansion works will be completed at the end of the first quarter of 2024.
LU-VE Group has had a production site in China since 2009 (originally in Changsu, Jiangsu province, Shanghai area, which was then moved to Tianmen in 2019). The presence in the province of Hubei has a strategic and economic importance for LU-VE Group because it allows it to be nearer to customers in China and Southeast Asia. The Tianmen plant (financed, built and built by local authorities to LU-VE specifications) has allowed a remodulation of rental costs and an improvement in the efficiency of the production processes. LU-VE Group was the first foreign company (and currently the only one) to establish itself in the region of about 60 million inhabitants (1.7 million the city of Tianmen alone). Hubei is an important political, cultural and economic hub of Central China, on one of the important new communication routes.
In the USA, LU-VE Group announces the establishment of LU-VE US Inc.. The new company name replaces the original Zyklus Heat Transfer Inc., a company acquired in 2018.
Headquartered in Jacksonville, Cherokee County, Texas, the company specializes in the manufacture of heat exchangers for the commercial refrigeration, refrigerated transportation and air conditioning industries. It has a long tradition in the sector and is deeply rooted in the territory with a clientele of primary importance. To expand its positioning in the North and Central American market, LU-VE Group has planned an expansion of the factory aimed at adding additional space for the installation of new production lines for the production of ventilated products (condensers, gas coolers and dry coolers).
Matteo Liberali, CEO of LU-VE Group, said: "We are very proud to advance two more steps in our international expansion plan in strategic geographical areas. China and Southeast Asia are booming markets for us. We have decided to further strengthen the plant, also to enjoy the advantages of 'For China from China', the new policy of the Chinese government intended to increase national consumption of high quality products. This also includes the policy of expanding the cold chain, where investments of around €80 billion are planned in the period 2023-2028. The second step is in the USA: we are strengthening our presence in the country to consolidate our positioning and seize the development opportunities that the market offers: for this reason we plan to expand the plant with the aim of expanding our offer and increasing production capacity".
