WEG will invest in vertical integration processes
WEG will invest approximately R$670 million ($122.7 million) in its transformer and electric motor businesses.
Image for illustration purposes.
Brazil, Jaraguá do Sul: WEG plans to invest approximately R$670 million ($122.7 million) over the next five years. These investments will be focused on the expansion and vertical integration of its transformer and electric motor businesses in Mexico and Brazil.
In Mexico, the investments are intented for the construction of a new building for manufacturing wires in the city of Atotonilco de Tula, in addition to the acquisition and installation of equipment. The aim is to meet current and projected demand for wires and cables used in the transformer and electric motor businesses in North America. The planned investment is around R$336 million over the next five years.
In Brazil, the investments are planned for the manufacturing plants of Itajaí and Guaramirim, both in the state of Santa Catarina. In Itajaí, the company will expand its wire factory by 9500 m2, currently measuring 8500 m2, to meet current and projected demand for transformers in Brazil. The planned investment in this project is close to R$169 million and has an estimated timeline of five years.
In Guaramirim, the plan is to expand one of the foundry buildings, currently measuring 11000 m2, by an additional 6000 m2. The company also aims to modernize the machinery, with an expected investment of approximately R$165 million over the next three years.
According to Rodrigo Fumo, Managing Director of Industrial Motors at WEG, the initiative reinforces the company’s strategy and commitment to the sustainable development of its businesses, which involves investing in the vertical integration of industrial processes, looking to optimize resources, costs, and delivery times for its products.
Source: WEG
