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Luvata Breaks Ground on Multi-Million Dollar Copper Tube Facility

Plant to increase market capacity for North American HVACR market by 50,000 tons

January 29, 2008 
Under a year from announcing its intention to develop in Mexico, Luvata, a leading manufacturer of tubes, coils and coolers for the heating, ventilation, air-conditioning and refrigeration (HVACR) industry, has announced the official ground-breaking on its multi-million dollar copper-tube manufacturing plant in Guadalupe, Nuevo Leon.  Costing more than $40 million, the new facility will increase Luvata’s copper-tube capacity in North America by approximately 50,000 tons yearly, strengthening the company’s position as a leading supplier to the HVACR industry.

Continued growth in the North American HVACR market has led to an increase in demand for high-precision copper tubes.  As a major supplier of tube and completed coil units in copper and aluminum, Luvata’s new plant is strategically positioned to support its existing facility in Franklin, Kentucky, and to serve as a key production point for some of The Group’s customers in the region.

“Luvata has historically been a leader in the global copper heat-transfer tubes market for the HVACR industry,” said Ron Beal, Executive Vice-President of Luvata’s Tubes Business Unit. “Over the past year, Luvata has taken some major steps to further establish itself as a major HVACR supplier in North America, including a major business acquisition, innovative product development and now the construction of a multi-million dollar state-of-the-art manufacturing facility.”

The new plant will create approximately 250 jobs near Monterrey, Mexico.  The plant is expected to begin tube production in September 2008.  This is Luvata’s first new facility since its acquisition of ECO Group, the world’s foremost manufacturer of HVACR coils and coolers in Q2 2007.

“This new facility will allow Luvata to meet the HVACR industry’s increased demand for copper tubing in North America,” Ron continued.  “Despite a challenging year for the industry – particularly in the US, Luvata is delighted to be following our 2007 announcement with plans for this plant to become a reality.”

(Centre) John Peter Leesi, CEO of Luvata; Cristina Diaz, Mayor of Guadalupe and Finn Johnsson, Chairman of Luvata, lay the first foundations of the plant that will increase tube capacity in America by up to 50,000 tonnes.

About Luvata

Formerly known as Outokumpu Copper Products, and acquired from Outokumpu OYJ in 2005 by Nordic Capital, Luvata is the leading international supplier of solutions, services, components and materials in a variety of metals for manufacturing and construction. Luvata’s solutions are used in industries such as power generation, architecture, automotive, transport, medicine, air-conditioning, industrial refrigeration, consumer products and construction. The company’s continued success is attributed to its longevity, technological excellence, and strategy of building partnerships beyond metals. Employing over 8,500 staff in 18 countries, Luvata works in partnership with customers such as Siemens, Toyota, CERN, Shaaz, and DWD International.


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