News Release
WEG Announces New Organizational
Structure
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Operating company WEG Equipamentos Elétricos to concentrate activities in the
electro-electronic segment.
Other industrial activities will be concentrated in subsidiary WEG Indústrias;
Restructuring will allow efficiency gains and better management quality.
Jaraguá do Sul, January 02, 2006 - WEG S.A. (Bovespa: WEGE3, WEGE4), one of the largest
manufacturers of electric motors and related electrical equipment in the world, honoring its commitment
to corporate governance best practices, informs its shareholders and to the general investing public the
organizational restructuring of its operating subsidiaries, as detailed :
1. In November, 2005, the indirectly controlled company WEG Máquinas São Bernardo Ltda. had its
name altered to WEG Equipamentos Elétricos S.A. and its headquarters moved from the city of São
Bernardo do Campo, state of São Paulo, to the city of Jaraguá do Sul, state of Santa Catarina.
2. Today, January 2nd, 2006, the subsidiary WEG Indústrias S.A. held an Extraordinary General
Shareholders Assembly that approved the spin-off of the units responsible for the electro-electronic
equipments industrial operations.
3. Also today the subsidiary WEG Equipamentos Elétricos S.A. approved, in its own Extraordinary
General Shareholders Assembly, the appraisal formulated by specialists to incorporate all
properties, rights and obligations spun-off from WEG Indústrias S.A., represented by assets and
liabilities of the operating units WEG Motores, WEG Máquinas, WEG Transformadores, WEG
Acionamentos and WEG Automação.
4. WEG Indústrias S.A. maintains the operating units WEG Química and WEG Florestal, responsible
for the business not directly linked to the electro-electronic segment, but also deemed important for
the development of the WEG Group.
5. The restructuring allows concentrating in separate companies the diversified business segments that
are the focus of WEG S.A., with gains in efficiency and quality of management, higher operating and
commercial synergies, administrative process optimization, besides allowing for tax benefit. WEG
S.A. now controls WEG Equipamentos Elétricos S.A. (electro-electronic segment), WEG Indústrias
S.A. (other industrial activities) and WEG Exportadora S.A. (the Group’s trading and holding
company for the industrial and commercial operations outside Brazil).
6. This restructuring does not represents any new burden or obligation, nor does it change the
statutory rights enjoyed by the shareholders of WEG S.A., which continues to be a public company
and to have its shares listed for trading in the Bolsa de Valores de São Paulo.
News Release
Previous to the Restructuring
WEG S.A
WEG
Indústrias S.A.
WEG
Amazônia S.A.
WEG Máquinas
São Bernardo S.A.
WEG
Exportadora S.A.
Units:
Corporativo
Motores / Guarulhos
Máquinas
Acionamentos
Automação
Transformadores
Química
Florestal
Subsidiaries
outside Brazil
After the Restructuring
WEG S.A
WEG
Indústrias S.A.
Units:
Química
Florestal
WEG
Exportadora S.A
WEG
Equipamentos
Elétricos S.A.
WEG
Amazônia S.A.
Units:
Corporativo
Motores / Guarulhos
Máquinas / São Bernardo
Acionamentos
Automação
Transformadores
Subsidiaries
outside Brazil
Information contained in this document includes forward-looking statements and reflect current perception and
perspectives held by WEG’s officers on the evolution of macroeconomic environment, industry conditions, company’s
performance and financial results. Any statements, expectations, capacities, plans and estimates contained in this
document and that do not describe historical facts, such as dividend payments, future direction of operations, execution
of relevant operating and financing strategies, investment programs, factors or trends that affect the financial conditions,
liquidity or results from operations are forward-looking in nature and contemplate several risks and uncertainties. There
can be no assurance that such results will materialize. The statements are based in several factors and expectations,
including economic and market conditions, competition within the industry and operating factors. Any changes to those
expectations and factors may signify that real results will materially differ from the current expectations ...