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WEG plans to invest $345m in Mexico and China

31 October, 2013

The Brazilian motor-maker WEG has announced plans to invest $345m over the coming five years to expand its facilities and boost production in Mexico and China.

In Mexico, WEG will expand its existing manufacturing complex and increase its vertical integration, making it similar to WEG’s main industrial complex in Jaraguá do Sul, Brazil. This will include the construction of a cast-iron foundry capable of meeting all of its needs for cast-iron components for the industrial motor frame sizes that it manufactures in Mexico and delivers to North America. The total investment is expected to be close to $210m over the next five years.

In China, WEG will build a new industrial motor manufacturing plant in Rugao, 180km from Shanghai. WEG will also expand its existing plant in Nantong. These investments will total nearly $135m in the period to 2020. Both plants will help meet the increasing demand in the Asian market.

“These investments are essential for WEG’s future market share growth in the two largest global markets for electric machines – North America and China,” says WEG Motors’ managing director, Siegfried Kreutzfeld. “These investments will allow WEG to have continuous growth with high-technology products that are properly customised to meet our customer demands in all the worldwide markets we cover.”

WEG opened its first motor manufacturing plant outside Brazil in Mexico in 2000. It acquired the factory in Nantong, China, in 2004.

Kreutzfeld: investments are essential for WEG's future

“WEG Electric is a much different company from ten years ago since almost 15% of all revenues are received from overseas manufacturing plants,” Kreutzfeld reports. “Having production plants closer to our customers brings added advantages and allows us to grow faster.”

WEG, founded in 1961, is the largest manufacturer of industrial electric motors in the Americas. It also produces power transmission and distribution equipment, automation systems and coatings. It has more than 25,000 employees worldwide.

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