LU-VE Group Expands Tianmen Plant to Meet Growing Demand in China

LU-VE Group, a leading multinational in the air heat exchanger sector, has doubled the size of its Tianmen production plant in Hubei Province, China. The expansion increases the plant’s area from 19,000 square meters to over 43,000 square meters, including 6,640 square meters dedicated to finished product storage. This development aligns with the Group's international growth strategy and aims to serve the rapidly expanding Chinese markets for data centers and power generation.

The ribbon-cutting ceremony on December 3, 2024, featured LU-VE Group management and local officials. The plant expansion, supported by the Tianmen Municipality and Economic Development Zone, is part of the “Belt and Road Initiative” designed to attract foreign investments in inland China. The initiative provides LU-VE Tianmen with tax incentives, energy subsidies, and workforce training programs.

Strategic Growth and Government Collaboration

LU-VE Tianmen remains the only foreign company operating in the region, highlighting its ability to capitalize on strategic opportunities. The enhanced production facility is geared toward innovative cooling solutions for data centers and power generation—sectors witnessing significant growth in China. The expansion allows LU-VE to participate in the government’s “For China from China” program, which encourages domestic production and consumption of high-quality goods, including an ambitious plan to develop the cold chain with investments of €80 billion by 2028.

During the ceremony, local authorities awarded LU-VE Tianmen General Manager, Thomas Stiller, honorary citizenship for his contributions to the region’s economic growth and support during the COVID-19 pandemic.

China's Booming Data Center Sector

China is a key player in the global data center industry, with 330 centers managed by 67 operators at the end of 2023, totaling 4.8 GW in capacity. With another 1.2 GW under construction and 2 GW planned, the market generated 240 billion RMB in 2023—a 27% increase from 2022. This growth positions China second only to the United States in data center development. The LU-VE Tianmen expansion aligns with China’s Five-Year Plan for the Development of the Big Data Industry, which targets a 3 trillion RMB valuation by 2025, driven by an annual growth rate of 25%.

Commitment to Sustainability and Innovation

LU-VE Group Chairman and CEO, Matteo Liberali, emphasized the strategic importance of the Chinese market and the Group’s commitment to sustainable, low-impact solutions. "Since entering China in 2011, we have steadily strengthened our presence with local government support. Our Tianmen plant expansion positions us as a key player in China’s refrigeration, power generation, and data center markets," said Liberali.

The Group has secured a two-year supply agreement with a leading local operator and is in negotiations with other partners. LU-VE’s focus on eco-friendly solutions aligns with China's goals of energy efficiency and sustainability, supporting the broader objectives of the "Chinese Dream" initiative promoted by President Xi Jinping.

A Step Towards a Sustainable Future

This strategic expansion cements LU-VE Group’s role in China’s energy and technology evolution, contributing to sustainable development and strengthening the Group's market positioning. With innovative solutions and a commitment to collaboration, LU-VE continues to drive growth in critical global sectors.