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Indian coil maker buys Luvata Czech

COIL MANUFACTURER Luvata Czech has been bought by India's Lloyd Electric & Engineering Ltd (LEEL).
LEEL, a heat exchanger coil manufacturer for ac systems, announced on May 14, its acquisition of Luvata's former operation based in Prague, Czech Republic. The 300-employee plant, which produces coil units for the European HVACR market was divested from Luvata last year.

In August 2007, Luvata acquired ECO SpA, the world's foremost manufacturer of heat-transfer coils and coolers but was forced to sell its Prague operation by the European Commision to ensure fair competition in the market.

Since that ruling, the Prague facility has been running as a standalone operation with its own, independent sales and management structure while awaiting a buyer. The plant was acquired by Lloyd Coils Czech s.r.o., owned by Lloyd Electric & Engineering Ltd, for an undisclosed sum.

LEEL is an OEM supplier to most of the ac manufacturers in India and its overseas business makes up 20% of its sales turnover. LEEL's bosses aim to use Luvata Czech to tap into the European coil market. Formed in 1988, LEEL has three manufacturing plants in India.

In FY 2007, Luvata Czech reported total revenues of euro 30.6 million. At the time of the European Commission's ruling, John-Peter Leesi, CEO and president of Luvata said 'A healthy market cannot exist without fair competition and so we respect the commission's judgment. We wish the best of futures to our former Czech company under its new owners and I hope it will continue with some of the Luvata tradition that made it so successful.'

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