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WEG announces Joint Venture for the manufacturing of wind turbines
WEG Announces Creation of a Joint Venture with Spanish M. Torres Olvega Industrial (MTOI) for the
manufacturing of wind turbines. Market expansion and synergy of WEG products were important
factors for the business.
Jaraguá do Sul (SC) March 03, 2011 - WEG S.A. (Bovespa: WEGE3 / OTC: WEGZY) announced
today that has signed a Memorandum of Understanding and a Technology Transfer Agreement of with
the M. Torres Olvega Industrial (MTOI).
The M Torres Group was founded in 1975 to design, develop and manufacture systems for industrial
and process automation solutions for the aerospace, paper and energy sectors.
The technology agreement between WEG and MTOI will result in the creation of a joint venture, with
equal participation, for manufacturing, assembling, installing and marketing of wind turbine generators,
as well as operation and maintenance services, in Brazil.
“This partnership, in addition to allowing a more direct presence in the wind power generation
business, will give us the agility to meet the growing domestic market demand," explains Harry
Schmelzer Jr., WEG’s CEO. "Furthermore, several of our products, such as generators, transformers,
drives, electric motors and coatings, are part of the package that we will provide," he added.
The wind turbine generators will be initially manufactured in WEG’s main industrial facilities in Jaraguá
do Sul, State of Santa Catarina. The project should see the delivery of the first units later this year. It is
expected to have 250 employees working directly in manufacturing these equipments.
The technology developed by MTOI allows for the electric generator to be directly coupled to the shaft
of the turbine, without the need of gearboxes. This represents a competitive advantage, as it reduces
the number of components and hence the possibility of operational problems and maintenance costs.
"We are entering this segment with a technology that is modern and comparable to the best in the
market. Our partner has wind turbine generators in operation in Europe for over 10 years" said Newton
Idemori, Business Development Officer at WEG.
# # # 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
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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$ 5.110 billion in 2009.
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.