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Luvata meets increased tube demand with multimillion-dollar new facility

Heat Transfer Division strengthens leading position in North-America with Mexican investment

February 12, 2007 - London
Luvata, the leading international metal-manufacturing solutions and services group, has announced its investment in a new facility that will increase its tube capacity by up to 50,000 tonnes per year. The new facility, costing over US$40 million, will create approximately 100 jobs in Monterrey, Mexico, and reinforce the Heat Transfer Division’s dominant position as a supplier to the Heating, Ventilation, Air-Conditioning and Refrigeration (HVACR) industry. First production from the new plant is expected in early 2008.

Luvata’s Heat Transfer Division is a major supplier of tube and completed coil units in copper and aluminium for the HVACR industries. Continued growth in the North American HVACR industry has led to an increase in demand for high-precision copper tube. Luvata’s new investment will support its existing facility in Franklin, Kentucky as well as provide a geographically strategic production point to serve some of the group’s larger customers.

Commenting on the decision, Hannu Wahlroos, Executive Vice-President of the Heat Transfer division said: “Luvata already has the market-leading position in supplying the North American HVACR industry, but there is still ample room for growth. This new plant will further establish the strength we have in this industry. We plan to continue exploring growth opportunities in other markets as well.”

Ron Beal, Vice-President of the Tubes Business Unit added: “Luvata’s North American presence has been built upon our expertise, service record and strategic partnerships with our customers. Opening this new facility will enable us to stay abreast of existing and future demand  and keep improving upon the service we give to our customers.”
This is Luvata’s second new facility in only 4 months, following the opening of a new welding consumables plant in Suzhou, China, in November 2006.

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, scientific research, clothing, consumer products and construction. The company’s success is not just attributed to its longevity and technological excellence, but also to its strategy of building lasting relationships by becoming involved its clients’ projects from the outset. Employing over 6,300 staff in 13 countries, Luvata works in partnership with customers such as Siemens, Toyota, CERN, Shaaz, and DWD International.


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