LU-VE Group doubles its presence in China: the new hub for data centers is created in Tianmen
The plant area was expanded for the production of innovative cooling systems for data centers and power generation, to serve the rapidly growing Chinese market.
Uboldo (VA), 3 December 2024 - LU-VE Group continues its international development plan,strengthening its presence in China. The Varese-based multinational company, listed on EuronextStar Milan, one of the largest operators worldwide in air heat exchanger sector, doubled the size ofthe LU-VE Tianmen production plant in the Hubei Province, whose area increased from 19,000 square meters to over 43,000 square meters, with 6,640 square meters dedicated to the storage offinished products.
The ribbon cutting ceremony was held on 3rd December in the presence of the management of LU-VE Group and local institutions.
The expansion agreement follows the lines already established for the opening of the plant and was supported by the Municipality of Tianmen and the authorities of the Tianmen Economic Development Zone, as part of the “Belt and Road Initiative” project, to encourage foreign investments in the inlandand western areas of the country. LU-VE Tianmen will benefit from tax relief, staff training incentivesand subsidies on energy costs and leasing.
During the inauguration ceremony, the local authorities awarded Thomas Stiller, General Manager of LU-VE Tianmen, honorary citizenship “by virtue of his contribution to the economic development ofthe region and the support provided during the Covid period”.
LU-VE Group was the first, and is still the only foreign company established in the Tianmen area,confirming its ability to identify strategic areas for growth. The expanded and enhanced production hub is geared towards the production of cooling systems for data centers and power generation, sectors experiencing significant growth in China.
It will allow the Group to benefit from the government programme “For China from China”, which aims to incentivise the production anddomestic consumption of high quality products, including a plan to expand the “cold chain” worth Euro 80 billion in investments by the end of the year 2028.
At the end of 2023, China had 330 data centres managed by 67 operators, with a total installedcapacity of 4.8 GW, 1.2 GW under construction and 2 GW planned1. With a turnover of 240 billionRMB in 2023 (+27% compared to 2022), the country ranks second in the world regarding the expansion of the sector, just behind the United States2.The expansion of LU-VE Tianmen is part of the Five-Year Plan for the Development of the Big Data Industry, promoted by the Chinese Ministry of Industry and Information Technology (MIIT), which envisages a value of 3 thousand billion RMB for the big data sector by 2025, with a growth rate of 25%3.
“Since we entered the Chinese market in 2011, we have constantly increased our presence, relying on the support of local authorities. In his recent visit to China, the President of the Italian Republic Sergio Mattarella stressed the importance of a relationship of mutual collaboration between our countries. At this stage, China is strategic for the Group. The strengthening of the Tianmen plant allows us to play an important role in the technological and sustainable evolution in the local refrigeration market and now also in the power generation and data centre market - said Matteo Liberali, Chairman and CEO of LU-VE Group - We have launched a two-year supply programme with one of the largest local operators, while other negotiations are in progress. We focus on solutions with low environmental impact and reduced energy consumption, to consolidate our positioning on the market and to meet the objectives of the 'Chinese Dream', a hallmark of the political line promoted by President Xi Jinping. Finally, I would like to thank all the men and women of LU-VE Tianmen and, in particular, Thomas Stiller, for having laid the foundations for our expansion in the country”