NEWS
RELEASE
WEG announces transformers business acquisition in South
Africa
Jaraguá do Sul (SC) September 09, 2013 - WEG S.A. (Bovespa: WEGE3 / OTC: WEGZY)
announced today the acquisition of the transformer and substation manufacturing business from
Hawker Siddeley Electric Africa (Pty) Ltd. (“HST”) in South Africa. The acquired business will
form a new subsidiary, WEG Transformers Africa (Pty) Ltd.
HST was one of the pioneers companies in mini substations and has become one of the largest
manufacturers of mini substations and distribution transformers in South Africa, with the
capability to design and manufacture the complete range presently in use in the country’s
industrial sector. HST has estimated potential revenues of approximately US$ 10 million over
the next 12 months. The transaction was notified to South Africa competition authorities.
Mr. Carlos Prinz, WEG’s T&D Managing Director, says the rationale behind the acquisition is
that while WEG has enjoyed tremendous success in the African market with the supply of large
transformers (higher than 20 MVA), it has not been able to participate in the 50 kVA to 20 MVA
market range in both distribution transformers and mini substations.
“With this acquisition we can supply a complete product range in the various segments, on a
turnkey basis, with a cost leadership advantage. We are creating a very strong and competitive
expansion platform in the African continent” said Carlos Prinz. WEG’s Managing Director in
South Africa, Louis Meiring, mentioned that “the acquisition is in line with our philosophy of local
investment and aligns with the local content requirements of Eskom and other parastatals.”
According Louis Meiring “the intention is to recapitalise the HST business with investments in
new equipment and training of employees.”
The assets acquisition of HST will not trigger withdraw rights for this acquisition does not fit into
any of the situations foreseen in Article 256 of Law 6404/76, amended by Law No. 10.303/01,
since it is not the acquisition of mercantile society.
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RELEASE
Investor Relations WEG
Luis Fernando Oliveira
(47) 3276-6973
Twitter: @weg_ir
luisfernando@weg.net
Corporate Communications WEG
Andressa Cristina Pereira
(47) 3276-4295
Twitter: @weg_wr
andressa@weg.net
www.weg.net/ri
www.weg.net/br/Media-Center
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
businesses: Motors, Energy, Transmission and Distribution, Automation and Coatings. With
over 27 thousand employees, it had net 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 (São Paulo, 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, Singapore, India, Russia and United Arab
Emirates.
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