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WEG hits 1m motors a month - and invests $500m

01 May, 2004

The Brasilian motor-maker WEG has hit a production level of 1,000,000 electric motors per month as it embarks on its biggest investment in manufacturing to date - spending over $500m to more than double the capacity of its industrial park in Jaraguá do Sul, from 430,000m˛ to 868,000m˛.

The new investment underlines WEG`s determination to become the world`s largest manufacturer of low-voltage electric motors by 2007.

"Our decision to invest $500m over ten years is unprecedented in today`s highly competitive and rapidly changing global climate," says WEG`s chief executive, Decio Da Silva. "However, for us, it`s business as usual.

"WEG`s policy of investing in our own manufacturing facilities is in direct contrast to those of our major competitors, many of whom are moving their production to Asian countries," Da Silva points out. "We think that this policy is short-sighted and prefer to keep all manufacturing issues, from design to production, under our own close control.

"It`s a strategy that`s difficult to argue against when our latest trading statement shows a 28% increase in turnover, up $150m from $550m in 2002, to $700m in 2003," Da Silva adds. "Furthermore, this increase has been achieved against a backdrop of global trading conditions that are still quite difficult and unpredictable."

The new plant (shown above, on the left) is expected to take ten years to complete. Some 60% of the new space will be devoted to producing LV motors for export. Facilities on site will include aluminium die-casting, fabrication, wire-drawing, winding, casting, and machining, as well as control panel and circuit-breaker manufacturing.




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