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WEG takes over Chinese motor factory

01 February, 2005

The Brazilian motor-maker WEG has bought a factory in China which it will use to produce medium and low voltage three-phase motors. The factory, WEG`s first in Asia, employs 350 people and is expected to generate sales worth $15.7m this year.

The 20,000m˛ factory, which was already producing motors, has been renamed WEG Nantong Electric Motor Manufacturing. It is located at Nantong, on the banks of the Yellow River, 250km from Shanghai.

"We aim to increase our participation in the Asian market by improving operational and commercial logistics, and being more competitive," says WEG`s president, Décio da Silva.

WEG faces considerable competition in the Chinese market. There about 1,200 factories making motors in China, although just 70 manufacturers - most of the state-owned - account for 80% of the market.

WEG already has factories Argentina, Mexico and Portugal, as well as Brazil.

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