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June 25, 2019

LU-VE expands in USA: new plant in Texas

The Italian multinational based in Uboldo near Milan gains strength in the USA, the most important market in the world for heat exchangers, with a new plant in Jacksonville, Texas.

The expansion is part of a programme of incentives provided by the City of Jacksonville and responds to the growing production required by the rapid development of the American market.

Uboldo (Varese), 21 June 2019 – The international growth of LU-VE continues. The company, based in the Italian province of Varese, is listed on the Milan Stock Exchange and is the third player in the world in the market segment of ventilated equipment. After completing the closing of the acquisition of the Air Heat Exchanger division of Alfa Laval in April 2019, the Italian multinational, in line with its global investment plan in strategic areas, now announces the construction of a new facility of approximately 25,000 square meters at its subsidiary company Zyklus (Jacksonville, Cherokee County, Texas) in the USA.

Crowning a strategic project aimed at entering the biggest market in the world for refrigeration and air conditioning, in June 2018 LU-VE bought Zyklus, which produces and sells heat exchangers. This was the first indispensable step in a medium-term plan for growth in the North American continent. In response to the favourable conditions in the local market, LU-VE has decided to speed up the expansion process by increasing the size of the existing plant.

The plan received a warm response from JEDCO – the Jacksonville Economic Development Corporation (a local public body that deals with the economic development of the area).In the last few days in fact the Jacksonville City Council unanimously approved a package of incentives which will enable the construction of a production facility of approximately 25,000 square metres in the Norman Industrial Park in the city. The agreement between JEDCO and LU-VE Group includes the concession, free of charge, of 80,000 square metres of ground and a long-term policy of tax credits in return for the creation of at least 50 new jobs within 48 months from the end of construction.

Zyklus is working on the design of the new plant and building work is scheduled to start in autumn. The cost of the investment is estimated to be about €5 million, in the period 2019/2021.

The USA project is part of the growth programme launched by LU-VE in strategic areas, such as China and Poland, to serve local markets which are growing strongly. Also in America, LU-VE has grasped the investment opportunity offered by the incentive plans provided by the local authorities in order to enlarge its production base and respond to the development potential offered by the various countries in that region.

Matteo Liberali, CEO of LU-VE, stated: "this operation is very important for our international growth in general and the United States in particular. The American market, which is continuing to grow steadily, is highly structured and more difficult to penetrate than emerging markets. For us, this operation represents an excellent opportunity to exploit the innovative technologies of our products. JEDCO has offered us a great opportunity which we could not refuse and which we intend to fully exploit, thanks to our excellent relations with the local community to which we hope we can bring significant benefits, both economic and social".

"The name LU-VE is an acronym of ‘LUcky – VEnture’, or fortunate enterprise, and Jacksonville is extremely fortunate to welcome an enterprise with such a wide international reach and that is growing strongly", declared James Hubbard, President of JEDCO - "The presence of LU-VE in the Norman Industrial Park will create important synergies also with other companies operating there".

In addition to the United States and Italy (where the Group has its headquarters), LU-VE today has production facilities in China, Finland, India, Poland, the Czech Republic, Sweden and Russia.

The company, which closed 2018 with a pro-forma turnover of €420.7 million, employs more than 3,000 people throughout the world, including more than a thousand in Italy.