Brazil’s Weg to invest 25 million reals in Chinese factory

25 June 2007

Sao Paulo, Brazil, 25 June – Weg, a Brazilian manufacturer of electrical motors with factories in five countries, is this year to invest 270 million reals, 25 million of which in its production unit in China, the company’s chairman, Paulo Décio da Silva said Friday in Sao Paulo.

Silva noted that with this investment the company aimed to widen Weg’s presence in Asia as well as to become a supplier of industrial engines to the Chinese market.

“Within three years we estimate to be selling US$100 million in China,” Silva said

In 2004, Weg acquired Nantong Electric Motor Manufacturing, and since 2005 has produced industrial low and medium voltage electric motors at its Chinese unit.

With this investment, Weg estimates it will see 15 percent growth this year, ending 2007 with turnover of 4 billion reals.

Silva said that his company was looking to reduce costs and invest in technology in order to be competitive in the face of the rise in value of the Brazilian currency.

the company, which is present in over 100 countries, has factories in Brazil, Argentina, Portugal, Mexico and China.

the investment plan also includes expanding the Mexican factory, where the company has a third of the market for electrical motors. (macauhub)