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Saturday, October 22, 2016

WEG Electric to Expand Capacity in Mexico, China

October 31, 2013

WEG Electric announced investments of $345 million over the next five years for the expansion and increased production in both Mexico and China.

The existing manufacturing complex in Mexico will benefit from expanded production capacity as well as increased vertical integration, making it similar to WEG’s largest industrial complex in Jaraguá do Sul, Brazil. The expansion will include the construction of a complete cast iron foundry that will be capable of supplying all the needs for cast iron components in all industrial electric motor frame sizes manufactured in Mexico and delivered to North American markets. The total investment  in MExico is expected to be close to $210 million over the next five years.

In China, WEG will build a new industrial electric motor manufacturing plant in Rugao, which is the technological and industrial development zone 65km away from Nantong and 180km away from Shanghai. In addition to this investment, WEG will expand the current Nantong plant. In China, investments will total nearly $135 million through the year 2020. Both of these plants aim to help the company meet the increased demand of the Asian Market.

Siegfried Kreutzfeld, WEG Motors Managing Director states, said, “These investments are essential for WEG’s future market share growth in the two largest global markets for electric machines, North America and China.” Kreutzfeld stresses “These investments will allow WEG to have continuous growth with high-technology products that are properly customized to meet our customer demands in all the worldwide markets we cover.”

WEG is not new to overseas manufacturing since it started in 2000 with the operation in Mexico and then in 2004 with the acquisition of the Nantong, China factory. Kreutzfeld said “WEG Electric is a much different company from ten years ago since almost 15% of all revenues are received from overseas manufacturing plants. Having production plants closer to our customers brings added advantages and allows us to grow faster.”

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