Indian plant for WEG

06 June 2008

WEG, Brazil headquartered systems supplier, will build a new plant in Hosur, India, according to reports from the company on June 5, 2008. The expansion into India is hoped to improve WEG’s international distribution capacity.

US$50 million (€32 million) will be pumped into the new facility in the city next to Bangalore, in the state of Tamil Nadi. This investment is hoped to get the project off the ground, starting with the conversion of a 170,000sq m existing property. It is anticipated the new plant will start the production of electrical motors at the end of 2009, reaching total capacity by the end of 2013.

Executive president of WEG, Harry Schmelzer Jr, said: ‘We are investing in distribution, with open subsidiaries in Russia and Dubai’.

He continued: ‘The Hosur plant will build on the manufacturing structures we already have in place in Brazil, Argentina, Mexico, Portugal and China; cementing our position as one of the biggest players in the electrical products world market of industrial uses.’

Sérgio Schwartz, vice president and international director of WEG said India had proved itself as an extremely attractive market since the company started commercialisation activities with its own subsidiary in 2004.

He added: ‘We delivered important feeding in irrigation projects, generation of power, electrical, hydraulic and thermal. Asia in general is a region with large market growth and there are many possibilities for expansion in our line business. This new plant shows our commitment to the region for future improvement and also with the development of WEG itself’.

The administrative and investor relations director of WEG, Alidor Lueders, described the Bangalore region as ‘especially attractive’ for operations similar to WEG’s.

‘The area offers excellent educational institutions and the qualified workforce in the area is very high. The infrastructure of the area is also very good, with close access to major highways, railways and international airports.’

Besides the new plant in India, WEG is extending its motors and generators manufacturing line in São Bernardo do Campo/SP and constructing a new plant in Jaraguá do Sul. Both plants are in Brazil.


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