Luvata plans to expand its resistance-welding electrode manufacturing capacity in China, in line with growing automotive demand there. The London-based manufacturer entered into a new long-term lease for a plant in Suzhou, nearby its current operation in that city. The new plant is nearing completion and will be available for equipment installation by October 1. Luvata emphasized that it expects no disruption in its deliveries to customers.

The company did not indicate the volume of its Chinese electrode manufacturing operation.

“We see a significant opportunity in China to add value with a Luvata weld,” stated Luvata CEO John Peter Leesi.

Luvata is among the largest manufacturers of resistance-welding electrodes in the world. It opened its third plant in Suzhou in 2006. “Our strategy is to grow in niche markets. This strategy combined with our industry experience in the manufacture of resistance-welding electrodes is a perfect match,” said Leesi. “Our success in China, along with the market outlook for automobiles, provides us with an excellent opportunity to grow.”

Resistance welding involves applying electric current and mechanical pressure to create a weld between two pieces of metal. Electrodes conduct the electric current to the two pieces of metal.

Welding high-strength alloys, coated metals, and metals of varying thickness often requires specialty electrodes, and Luvata manufactures several brands (Nitrode^®, Z-Trode^® and Cupal^®) for different applications, with alloy compositions and proprietary cold-working properties that improve welding performance in adverse conditions, e.g., in automotive assembly.

China is the world’s largest automobile manufacturer, and forecasts call for it to continue expanding its output at double-digit rates for the foreseeable future. All global automakers have manufacturing capacity in China, and many are in partnership with domestic producers, creating greater opportunities for growth.

In addition to automakers, Luvata supplies welding consumable products to the renewable energy, power generation, architecture, medicine, air-conditioning, industrial refrigeration, consumer products, and construction markets.