Luvata Strategy Includes Senior Management Changes

The metal manufacturer makes several changes focused on the heat transfer market, internal operational excellence and improved performance in its growing Chinese operations.

Luvata U.K. Ltd. (London, England), a world leader in metal-solution manufacturing, heat-transfer technology and engineering-and-design services, recently announced several executive-level developments that became effective on September 1 and focus on the Heat Transfer Solutions Division, the Group’s Operational Excellence function and also on maximizing the performance of its Chinese operations, which have expanded from one to six plants in nine years.

The company has three divisions: Heat Transfer Solutions (HTS), Tubes and Special Products. Its Rolled-Products division was divested in 2011, in line with The Group’s focus on higher value-added solutions. The new developments include:

New Head of Luvata China. This is a new organizational unit in the company. The Group’s plants in China represent all three of its operating divisions and employ over 20 percent of its staff. A more consolidated Chinese operation will give greater strength and offer substantial opportunities to exploit synergies in the country.

Hannu Wahlroos is now the head of Luvata China, retaining his position as an executive vice president on the executive team and reporting to the chief executive officer and president. Hannu is currently the head of HTS. He has a long history of setting up and running businesses worldwide and especially in China. He is located in Zhongshan and works with the business units to strengthen leadership and further support the development of the Chinese business.

New Head of HTS Division. Dennis Appel is now the head of Luvata HTS Division, joining the executive team as an executive vice president and based in the U.S. Appel was formerly the vice president of HTS Americas (a replacement for him in this role will be announced soon); he has 15 years of experience with Luvata, particularly in running the HTS business in U.S., Europe and Asia.

New Head of HTS China. Fredrik Vejgarden is now the head of Luvata HTS China, reporting to Appel as a vice president. Vejgarden was formerly the head of Operational Excellence for the Luvata Group. Formerly with McKinsey, he has been responsible for much of the company’s strategic business transformation, particularly overseeing the introduction of lean principles throughout the business.

Following his reassignment, Luvata will split its Operational Excellence function into two parts, creating two new management roles: Head of Luvata Operating System and Head of Strategy and Business Development.

New Head of Luvata Operating System. Chris Russell was appointed the head of the ‘Luvata Operating System’. This role comprises the Luvata Sales System (LSS), the Luvata Production System (LPS), and Operational Risk Management. Russell was already the head of the LPS team. He has many years’ experience in operations and specific knowledge of most of the company’s production. He will not join the executive team but will report directly to the chief executive officer and president.

The new Head of Strategy and Business Development has yet to be announced. John Peter Leesi, the chief executive office and president, commented on the changes: “This is a well-timed investment in the strength of our Chinese operation, in which our sales and production have grown significantly. In addition, it’s a credit to our long-term investment in developing leadership that we have been able to fill so many senior-level positions with high-performing internal candidates.”

Luvata solutions are used in industries such as renewable energy, power generation, automotive, medicine, air-conditioning, industrial refrigeration, and consumer products. The company’s continued success is attributed to its longevity, technological excellence and strategy of building partnerships beyond metals. Employing over 6,400 staff in 14 countries, the company works in partnership with customers such as Siemens, Toyota, CERN, and DWD International. www.luvata.com