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WEG Plans To Expand And Modernize Its Factory In Espírito Santo. The Company Plans To Invest Around R$178 Million In The Linhares Unit
Even with a projected decline for 2022, the multinational WEG, manufacturer of electric motors, has decided to announce another investment involving millions. By 2023, the company intends to invest R$ 178.2 million to expand and modernize its factory located in the municipality of Linhares, in Espírito Santo. This unit is WEG’s second largest industrial park, second only to the factory located in Jaraguá do Sul, Santa Catarina, where its main headquarters is situated.
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14 Thousand M² Will Be Added To The Factory In Espírito Santo
To grasp the scale of the investment, since WEG’s arrival in the state, R$ 257 million has already been invested. With the new investments, the factory in Espírito Santo, which has a built area of 65,000 m², will expand to 79,000 m² and additionally, the company will offer 250 new job positions.
The total production of the plant, once the expansion works are completed, is expected to increase by 30%. According to Júlio Cesar Ramires, superintendent director of commercial motors and appliance at WEG, the investment in the Espírito Santo unit aligns with the growth in demand the company expects for the coming years. Not even the possible economic downturn next year diminishes WEG’s customers’ purchasing momentum, Julio Cesar claims.
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90% Of The Production In Linhares, Espírito Santo Is Intended For The Local Market
Simultaneously, the company also plans to expand its share of products produced in Linhares in the external market. This is because, although 56% of last year’s sales came from abroad, small commercial electric motors still represent a small fraction of WEG’s exports.
In Espírito Santo, the company produces everything from items aimed at industrial kitchens to motors for industry, such as those used in compressors, lawn mowers, among others. Currently, the CEO states that 90% of the total production in Linhares is directed towards the local market.
According to the executive, with the investments in the factory in Espírito Santo, it is possible to make the plant more flexible so that both the export market and the domestic market can be served. Depending on demand, it’s possible to increase sales overseas.
WEG’s Shares Gained Attention On The Stock Exchange Last Year
The company’s shares were one of the highlights on the Stock Exchange last year with a valuation of 120% and are currently moving sideways in 2021. From the beginning of the year until now, the company recorded a decrease of 0.94%, which is still an excellent result, considering the over 11% drop registered by the Ibovespa in the same period.
One of the reasons for the company’s resilience in the capital market lies in its results, which please investors and analysts. In the third quarter, WEG reported a 26.2% increase in its profit, amounting to R$ 812.9 million. Revenue growth was even higher: 29.1%, reaching R$ 6.1 billion.
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