NEWS
RELEASE
WEG Tintas Announces Acquisition in Argentina
and new units in Brazil
NEW UNITS INCREASE COATINGS PRODUCTION CAPACITY, IMPROVE DISTRIBUTION
LOGISTICS IN BRAZIL AND EXPAND OPERATIONS IN LATIN AMERICA.
Jaraguá do Sul (SC) May 11, 2011 - WEG S.A. (Bovespa: WEGE3 / OTC: WEGZY)
announced today that it has signed an agreement for the acquisition, by WEG Tintas,
of Pulverlux S.A., an Argentine company specialized in manufacturing and marketing of
powder coatings. Additionally, WEG announced the opening of a new manufacturing
facility in Maua (SP) and of a distribution unit in Cabo de Santo Agostinho (PE). The
Brazilian units were already part of the previously announced and approved capital
budget.
Pulverlux operates in the architectural, aluminum profiles, electrical panels, appliances,
auto parts, machinery and equipment segments for over 10 years. With 42 employees
and 10,000 square meters area in Buenos Aires, the company has Revenues of
approximately $ 7 million per year.
At the same time, in response to increased investment in the exploration of Brazil’s presalt oil reserves, the new coatings’ manufacturing unit in Maua (SP) will improve
distribution logistics in the Brazilian Southeast Region as well as increase the
production capacity of liquid coatings. The unit of the Cabo de Santo Agostinho (PE),
located 25 kilometers from the Suape port and 17 kilometers from Recife, will improve
supply logistics in the Brazilian North and Northeast Regions.
"With these investments and the increase of our production capacity, we intend to
improve our distribution logistics in Brazil, and expand our operations in Latin America,"
said Reinaldo Richter, WEG Tintas Managing Director.
Leader in the Brazilian powder coatings market, WEG Tintas manufactures and
markets liquid, industrial, anti-corrosive and marine application coatings for different
market segments since 1983. With headquarters in Guaramirim (SC), the unit employs
over 600 people in Brazil.
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NEWS
RELEASE
For further information, please contact:
Investor Relations
Luis Fernando Oliveira
(47) 3276-6973
Twitter: @weg_ir
luisfernando@weg.net
www.weg.net/ri
Corporate Communications
Andressa Cristina Pereira
(47) 3276-4295
Twitter: @weg_wr
andressa@weg.net
www.weg.net/br/Media-Center
Statements about Future Expectations
Some statements contained herein may be projections or statements about future expectations.
Such statements are subject to known and unknown risks that may cause such expectations not
to come true or be substantially different from the expected. Those risks include, among others,
changes in the future demand for the products of the company, changes in the factors that
affect the domestic and international prices of the products, changes in the cost structures,
changes in the markets, changes in the prices practiced by the competitors, exchange rate
variations, changes in the political-economical scenario in Brazil and in emerging and
international markets.
About WEG – Founded in 1961, WEG operates mainly in the sector of capital goods and is one
of the largest world manufacturer of electric-electronic equipment, having five main lines:
Motors, Power, Transmission and Distribution, Automation and Coatings. With over 21
thousand employees, it had a gross turnover of R$ 5.3 billion in 2010.
In the country, the group has its headquarter and main industrial plants in Jaraguá do Sul/SC.
The 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
Hortolândia), Amazonas (Manaus), Espírito Santo (Linhares). Overseas, WEG has
manufacturing units in Argentina, México, Portugal, South Africa, China and India, 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.