Amid ongoing repercussions of Chinese automotive giant BYD‘s $1 billion electric vehicle plant investment, Brazilian industrial motor manufacturer WEG has launched its first-ever initiative via a lease in Manisa, Türkiye, valued at ₺1 billion ($29.2 million).
WEG, one of the world’s most prominent motor producers, will establish a gearbox manufacturing facility in Manisa to commence production by 2027 according to the plan. WEG’s Manisa facility is set to commence production in 2027.
Unlike its usual preference for land acquisitions in other projects, WEG’s decision to lease property in Türkiye is attributed to the country’s high real estate costs. The new facility, which will span approximately 12,000 square meters of closed area, is expected to provide employment opportunities for 150 people, bringing the company’s total workforce in Türkiye to 900.
‘Our traditional rivals are not present here’
Rodrigo Fumo, WEG’s General Manager for Industrial Motors, revealed that the company initially entered the Turkish market through local distributors and has been operating in the market for over two decades.
“We are optimistic about the growth potential of the industrial gearbox market in Türkiye and across Europe. This investment is a strategic step in our journey to expand our presence in the sector, strengthening our commitment to excellence in service, agility in deliveries, and innovative solutions that meet the needs of our customers,” Fumo stated on Thursday.
In September, WEG signed an agreement to acquire Volt Electric Motors, a subsidiary of Turkish conglomerate Saya Holding, for $88 million. The acquisition is deemed to align with WEG’s growth strategy for industrial and commercial motors, enabling the company to expand its presence and product offerings in competitive and strategic markets such as Eastern Europe, the Middle East, Asia, and North Africa, as Volt has been specialized in industrial and commercial electric motor production.
Brazil’s fourth most valuable company
Founded in 1961, WEG derives its name from the initials of its founders—electrician Werner Ricardo Voigt, manager Eggon Joao da Silva, and mechanic Geraldo Werninghaus. Initially focusing on electric motor production, the company has grown into one of Brazil’s largest private firms, operating in 29 countries and producing in 12, including Argentina, Mexico, Portugal, China, South Africa, the U.S., and India.
WEG diversified its operations during the 1980s, venturing into electrical components, industrial automation products, power and distribution transformers, liquid and powder coatings, and electrical insulation varnishes.
With annual sales of $19 billion, WEG is the fourth-largest company listed on the Brazilian Stock Exchange.
