(Allianz News) – LU-VE Spa announced on Thursday two new developments related to its international development program in strategic areas in China and the United States: In the Asian country, the company has signed an agreement for the expansion of a production plant, overseas LU-VE US Inc, originally Zyklus Heat Transfer Inc. The company was replaced by a company purchased in 2018.
For the China project, the company has contracted with Tianmen Province in Hubei Province to expand the LU-VE Tianmen production facility from the current 19,000 square meters to more than 43,000 square meters, including 6,640 square meters of semi-enclosed area dedicated to finished goods storage.
The deal, the company explained in a memorandum, is for 10 years and provides government investment to expand LU-VE’s Tianmen plant under the Belt and Road Initiative, which aims to connect China to Europe and attract investment. From foreign companies in the interior and west of the country.
LU-VE Tianmen will benefit from tax incentives, employee training incentives and favorable terms to review rent and energy costs. The company will have an additional 1,000 square feet of office space and will benefit from the installation of 36,000 square feet of photovoltaic panels to support the manufacturing facility. The expansion work will be completed by the end of the first quarter of 2024.
In the US, LU-VE Group announced the formation of LU-VE US Inc. The new company name replaced the original Zyklus Heat Transfer Inc. acquired in 2018.
Based in Jacksonville, Cherokee County, Texas, the company specializes in manufacturing heat exchangers for the commercial refrigeration, refrigerated transportation and air conditioning industries.
“It has a long heritage in the industry and is well established in the region with a large customer base,” points out LU-VE. To expand its position in the North and Central American market, LU-VE Group is planning a factory expansion to add additional space to install new production lines for air-conditioned products.
Matteo Liberali, CEO of LU-VE Group, said: “We are very proud to announce two new additions to our international expansion plan in geographies of strategic importance to us. We have decided that China and South East Asia are the fastest growing markets for us. To further strengthen the establishment and benefit from ‘China to China’ To take advantage, the Chinese government’s new policy aims to increase domestic consumption of high-quality products.
“Part of this is the policy to expand the ‘gold chain’, where investments of approximately 80 billion euros are planned for the period 2023-2028. The second building block is in the United States: we strengthen our presence in the country and strengthen our position to integrate and take advantage of the growth opportunities offered by the market, for this we expand our offer and production capacity. We are expanding the factory with the aim of scaling up.”
LU-VE stock is 1.0% in the red at EUR 29.10 per share.
By Alliance News Correspondent Ciara Bruschi
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