Weg announces new plant in India

22 July 2008

Weg has announced plans for expansion into India, with the construction of a new plant in Hosur specifically for the manufacture of a new line of electrical motors.
An investment of US$ 50 million is required to start the project. 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.

Weg announces new plant in India

Harry Schmelzer Jr, Executive President of Weg, said this announcement symbolises a big step forward in Weg’s international strategy. The new plant will improve the international distribution capacity of the company’s products, and will also improve the production capacity in selected markets. He commented: “We are investing in distribution, with open subsidiaries in Russia and Dubai. 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.”

Weg’s Vice President and International director, Sérgio Schwartz, added that India has proved itself as an extremely attractive market since the company started commercialisation activities with its own subsidiary in 2004. He commented: “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, said the Banglore region is especially attractive for operations similar to Weg’s. He commented: “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.