WEG To Invest R$1.2B In Expansion of Transformer Production Capacity

Recently, WEG S.A announced to the general market and its shareholders that it is seeking to expand transformer production in Mexico, Brazil, and Colombia by making an investment of R$1.2 billion. Over the next three years, the company looks to boost approximately 50% of its output capacity. The company will achieve this while focusing on its main operating markets simultaneously.

These investments are expected to be made in Betim and Itajuba industrial sites, in the Minas Gerais state, Brazil. A new factory that will be dedicated to radiator production will be built in Betim. This is in addition to the expansion of the building to set up a new area for winding, laboratory, warehouse and assembly. The new radiator factory will span an area of approximately 4,600 m². With more than a built area of 47,000 m², roughly an investment of around R$200 million will be spent in Betim operation.

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WEG is also planning to double its existing capacity in production in Itajuba. The company already owns a transformer plant that measures instruments and sets in the Brazilian municipality. It will set up a new factory with a built area of 6,000 m². 

It is said that an investment of about R$83 million, in the municipality, will facilitate huge export volumes from Brazil, other than just boosting the market share held by the company. This will help it grow its presence in both south and north American continents. 

An investment of about R$765 million will be made in Mexico by WEG, to establish another power transformer plant. Located in the newly obtained land in Atotonilco de Tula, the unit to be constructed will have a built area of 33,000 m². 

WEG’s plan on the Huehuetoca transformer production plant

The project’s strategy is to allow the existing Huehuetoca transformer plant to produce equipment ranging from 138 kV to 230 kV. It will also offer more capacity, by serving the North American transmission market which is up to 550 kV. This would meet the country’s increasing demand for power transformers and the USA.

WEG’s plan for Colombia is to boost its domestic output capacity. To achieve it, they will build a new 60 MVA transformer factory in Rionegro, Antioquia state.

The new industrial park will have a built area of approximately 23,000m². The oil sector demands will be met by a new industrial park as well as modernizing the energy park in the surrounding markets like Bolivia, Chile, Ecuador, Peru, and Central America. Approximately R$190 million investment will be made in the country. Construction works are expected to be completed in December 2026. 

The design of the new buildings will allow a gradual as well as a continuous growth in the output capacity. They will also meet the needs of the company’s expansion soon.