NEWS RELEASE WEG announces expansion of motors production capacity in Mexico and China

WEG announces expansion of motors production capacity in
Mexico and China
Jaraguá do Sul (SC) on September 30th, 2013 - WEG S.A. (Bovespa: WEGE3 / OTC: WEGZY)
announced investments of US$ 345 million over the next 5 years for expansion of motors
production capacity in Mexico and China.
In Mexico, investments will expand local production capacity and increase verticalization,
integrating the production process of the Mexican operation and making it similar to what exists
today at WEG’s largest industrial plant, in Jaraguá do Sul (SC). The Project includes the
construction of an iron foundry that will supply all the needs for machined cast components for all
industrial electric motors frame sizes manufactured in Mexico and destined to all North America
consumer markets. The planned investments are US$ 210 million over the next 5 years.
In China, the plans are for investments of US$ 135 million until 2020 in the construction of a new
manufacturing plant of industrial motors targeted to the Asian market, besides the additional
investment at the Nantong operation. The location selected for this new plant was Rugao, a
technological and industrial development zone 65km away from Nantong and 180km from
Mr. Siegfried Kreutzfeld, WEG’s Motors Managing Director, says “these investments are
fundamental for WEG’s growth in the future, it strengthens our position in two of largest global
markets of industrial electrical machines, North America and China. Furthermore, with these
investments we will be able to continue growing with products increasingly advanced technology,
customized to meet demands of our customers in each of the markets in which we operate”.
WEG started the international production in 2000 and the motors electric unit in Mexico was one
of the first manufacturing units outside Brazil. The Nantong unit, in China, was acquired in the
end of 2004. Siegfried Kreutzfeld mentioned, “WEG is a different company today that we had to
10 years ago. Starting from scratch, today almost 15% of our revenue is produced in overseas
plants. We intend to continue expanding this percentage”. According the executive “it is possible
to be competitive exporting from Brazil and this has always been WEG’s characteristics. But
having production close to our customers provides additional advantages and allows us to grow
even faster”.
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Investor Relations WEG
Luis Fernando Oliveira
(47) 3276-6973
Twitter: @weg_ir
Corporate Communications WEG
Andressa Cristina Pereira
(47) 3276-4295
Twitter: @weg_wr
About WEG – Founded in 1961, WEG operates mainly in the sector of capital goods and is one
of the largest world manufacturers of electric-electronic equipment, having five main business:
Motors, Energy, Transmission and Distribution, Automation and Coatings. With 27 thousand
employees, it had revenue of R$ 6.2 billion in 2012.
In Brazil, the group’s headquarters and main industrial plants are located in Jaraguá do Sul/SC.
Other plants are spread over Rio Grande do Sul (Gravataí), Santa Catarina (Blumenau,
Guaramirim, Itajaí and Joaçaba), São Paulo (Mauá, São Bernardo do Campo and Monte Alto),
Amazonas (Manaus), Espírito Santo (Linhares). Overseas, WEG has manufacturing units in
Argentina, Mexico, Portugal, South Africa, China, India, Austria and USA, besides distribution and
trading centers in the USA, Venezuela, Colombia, Chile, Germany, England, Belgium, France,
Spain, Italy, Sweden, Australia, Japan, Singapure, Índia, Russia and United Arab Emirates.
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