WEG Announces New Plant in India
Jaraguá do Sul (SC), May 26, 2008 – WEG (Bovespa: WEGE3), global provider of efficient solutions with
electric machines, has announced today plans for expansion into India, with the construction of a new plant
specifically for the manufacture of a new line of electrical motors.
The new plant will be built in Hosur, in the state of Tamil Nadu, a city next to Bangalore. An investment of US$
50 million is required to get the project off the ground, with the conversion of a 170,000 square meter 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.
Harry Schmelzer Jr, Executive President of WEG, said today’s announcement symbolizes 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 commercialization 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 Bangalore 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 (SC). Both plants are in Brazil.
WEG has recently announced its first quarter 2008 results, with gross revenues reaching R$ 1.1 billion, 13.3%
higher than first quarter 2007. Net earnings for the company have reached R$ 125.8 million for this period.
Forward-looking statements
Certain statements in this document may constitute forward-looking statements – projections or statements
about future expectations. Such statements are subject to known and unknown risks and uncertainties, which
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could cause such expectations not to materialize or actual results to differ materially from those set forth in the
forward-looking statements. These risks include: changes in future demand for the Company's products,
changes in the factors which affect domestic and international prices of the products, changes in the cost
structure, changes in prices charged by competitors, exchange rate variations, or changes in the Brazilian
political or economic scenario, or in emerging and international markets in general.
About WEG:
WEG, which provides efficient solutions with electric machines globally, has its head office in Jaraguá do Sul in
Brazil. Employing over 22,000 staff around the world, WEG was founded in 1961 as a manufacturer of electric
motors. Today, it is a major systems supplier, providing complete turnkey solutions including motors, inverter
drives, soft starters, PLCs, high and low voltage switchgear, transformers and systems software to a diverse
range of market sectors. In 2007 the company's turnover was in excess of $2.2 billion. It has manufacturing
plants in Brazil, Portugal, Argentina, Mexico and China.
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For further information please contact
Luís Fernando Oliveira
luisfernando@weg.net
Investor Relations Manager
+55 (47) 3276-6973
WEG - transforming energy into solutions.
www.weg.net
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Cristina Santos
cristinas@weg.net
Corporate Communications
+55 (47) 3276-4295