A WEG S.A. (B3: WEGE3 / OTC: WEGZY) announced an investment plan of approximately US$ 62 million to expand production capacity at its manufacturing site in Rugao, China. This plan aims to meet growing market demand and increase the company's presence in the region.
The investment plan will be executed over the next years and involves increasing the capacity for manufacturing components and local assembly. The plan also includes the construction of a 30,000 m² (323,000 ft²) factory for the manufacturing of high-voltage electric motors, expected to be completed in 2026.
According to João Paulo Gualberto da Silva, Managing Director of WEG Energy Business Unit, these investments reinforce the company's strategy and commitment to the sustainable development of its business "We are optimistic with the growth perspectives for the high-voltage industrial motor market in China and want to be ready to provide excellence, speed, and innovation to our customers" declares the executive.
WEG began its activities in China in 2004 with the acquisition of the Nantong manufacturing plant, a producer of low and high-voltage industrial electric motors. In 2014, the company expanded its presence with the acquisition of electric motor manufacturers for washing and dryers machines located in Changzhou. In 2015, it expanded its presence in the country with the Rugao manufacturing site construction, for low-voltage industrial motors. In 2019, it opened its drives & controls factory in Changzhou and, in 2024, added Marathon's motor and generator operations in the country. The company currently has six factories in China and has around 3,000 employees in the country.