WEG invests to double transformer production in MG and open new lines

The Brazilian WEG is investing R$ 34 million in its factory in Betim (MG), in a move to expand its production capacity for equipment aimed at generating and transmitting energy and inaugurate new production lines at the plant, the company told Reuters.

Acquired by WEG in 2020, the Minas Gerais unit produces large transformers, up to 800 kilovolts (kV), in addition to reactors.

With the investment, the plant will have its capacity doubled –the company does not report volumes– and will have two more new lines of equipment, one for mobile substations (SKIDS) and another for reforming and repowering power transformers.

WEG’s intention is to further expand its presence in the Brazilian electricity sector, of which it is already an important supplier, told Reuters Carlos Diether Prinz, superintendent director of WEG Transmissão & Distribuição.

In particular, he highlights the implementation of transformer reform at the mining unit, focusing on the demands of old hydroelectric plants, which have been in operation for many decades.

The Betim plant will reinforce transformer repair services already provided by the company to the market through its industrial complex in Blumenau (SC). The Santa Catarina unit will be responsible for the demands of the South region, while the Minas unit will assume responsibility for the other regions of the country.

“The renovation and repowering capacity in Betim will be higher than in Blumenau, because the market we have in the Southeast, North and Northeast regions is considerably more significant… explained Prinz.

Today, the company has the capacity to repair 25 transformers per year in Blumenau.

The investment in Betim to strengthen its presence in the electricity sector follows another, announced last week. WEG decided to expand and modernize the Balteau plant in Itajubá (MG), specialized in the manufacture of transformers for instruments and measurement sets.

The generation, transmission and distribution of energy is one of the main segments in which WEG operates, which also manufactures industrial electronic equipment, commercial motors, paints and varnishes.

In the second quarter, the energy area represented 39.5% of the company’s net operating revenue, totaling just over R$ 2.8 billion, between domestic and foreign markets.

According to Prinz, the company has seen good demand for orders from the sector, mainly for renewable generation projects and transmission auctions. “We have a very positive horizon ahead.”