WEG to invest R$1.2 billion to expand transformer production capacity
WEG S.A. has announced that it will invest R$1.2 billion ($244.5 million) over the next three years, to expand transformer production capacity in Brazil, Mexico and Colombia.
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Brazil, Jaraguá do Sul: WEG S.A. has announced that it will invest R$1.2 billion ($244.5 million) over the next three years, to expand transformer production capacity in Brazil, Mexico and Colombia.
The company plans to increase approximately 50% of its production capacity. The investment schedule foresees completion of the works by December 2026. In Brazil, investments will take place in the Betim and Itajubá industrial sites in Minas Gerais.
In Betim, in addition to the building expansion to allocate new winding area, assembly, laboratory and warehouse, a 4,600 m² factory for the production of radiators will be built. With an investment of about R$200 million, the Betim operation will have more than 47,000 m² built area.
In Itajubá, where WEG has a factory for measuring instruments and sets, it will double its production capacity with the construction of a 6,000 m² factory. The R$83 million investment in the municipality will increase the company’s market share and allow for a greater volume of exports from Brazil.
In Mexico, WEG will invest around R$765 million to build a new power transformer factory. The new 33,000 m² unit will be built in Atotonilco de Tula. The strategy of this project is to start serving the North American transmission market up to 550 kV, allowing the current Huehuetoca transformer factory to produce equipment from 138 kV to 230 kV and offering more capacity to meet the growing demand for transformers locally and in the USA.
For Colombia, WEG will construct a transformer factory up to 60 MVA in Rionegro, State of Antioquia. With approximately 23,000 m² of built area, the new industrial park will meet the demand of the oil sector and the need to expand and modernization of the energy park in neighboring markets such as Chile, Bolivia, Peru, Ecuador and Central America. Investment in the country will be approximately R$190 million.
Source: WEG