Worldwide demand for electrical equipment has increased beyond estimated projections causing extended lead times for motors and generators. In order to capitalize on the current situation, WEG is investing in new production facilities and making improvements to existing plants.
Low Voltage Motor Production for the Export Market
Several measures were taken at the beginning of 2007 to boost the production of LV motors for the export market. WEG's Low Voltage (LV) motor exports have already increased 25% during the first four months of 2007. Important improvements to this line of motors are also in progress, which will be facilitated by the addition of the following new factories and assembly lines.
Factory VI (107,639 sq ft): NEMA 254/6T and NEMA 324/6T LV motors. Scheduled to begin operation in July 2007.
Factory VII (161,459 sq ft): NEMA 586/7T and NEMA 6800 LV motors, High Voltage (HV) motors, and generators. Scheduled to begin operation in June 2007.
FAB III Assembly Line: NEMA 364/5T up to NEMA 504/5Z motors. Scheduled to begin operation in July 2007.
Cast Iron Parts Machining Center (96,875 sq ft): This facility will produce cast iron parts for factories VI and VII. Scheduled to begin operation in September 2007.
Foundry (172,223 sq ft): Frames, covers, and other fabricated parts. Scheduled to begin operation in December 2008.
With a total investment of $127 million U.S. in new production facilities and improvements, WEGÂżs export market LV motor production capacity will increase 8% during the second half of 2007, and another 12% over the first six months of 2008. This will bring a total increase of production over an 18-month period to more than 50%.
WEG is also investing heavily in its transformers, large motors, drives, and controls factories in order to improve upon present delivery times across all product lines. The company pledges to maintain its philosophy of continually investing in research, new products, and improved production capabilities in order to satisfy worldwide demand.