WEG has unveiled a significant investment plan totaling approximately $130 million, aimed at enhancing its vertical integration processes in Mexico and Brazil over the next five years. This strategic move focuses on expanding and modernizing its transformer and electric motor manufacturing capabilities in both countries.

In Mexico, WEG will invest around $68 million to build a new wire manufacturing facility in Atotonilco de Tula. This facility will feature advanced equipment designed to meet both current and future demand for wires and cables used in the company's transformer and electric motor businesses across North America.

In Brazil, WEG's investments will target its facilities in Itajaí and Guaramirim, both located in the state of Santa Catarina. The Itajaí plant will undergo a significant expansion, increasing its wire factory by 9,500 m² (102,000 ft²) to address rising demand for transformers, with an investment of approximately $32 million. The project is expected to span five years.

At the Guaramirim plant, WEG plans to expand an existing foundry by 6,000 m² (64,000 ft²) and modernize its machinery, with an investment of around $31 million over the next three years.

According to Rodrigo Fumo, Managing Director of Industrial Motors at WEG, this investment underscores the company's commitment to sustainable development and vertical integration. "These new investments are crucial for optimizing our resources, costs, and delivery times, and we are optimistic about the growth prospects for our electric motor and transformer businesses in Brazil and internationally," Fumo states.

Source: weg.net