Weg Letter port agosto

weg
LETTER
2
Investing in the future
Based on its business strategies, WEG has already
established challenging goals to become the # 1
world manufacturer of low voltage motors, which
are supported by specific marketing actions. The
Result of this is the ongoing
consolidation of the company position
in the foreign market. “The company
expects to have an increase in sales
20% this year above last year ”, says
CEO of WEG Décio da Silva. This growth
is mainly due to the sales increase in
transformers, and industrial automation products -
with an increase of 50% associated with the growth
of export products. Export sales are today
responsible for 40% of WEG’s income.
With its continued growth in the foreign market,
Weg is currently selling to over 90 countries on five
continents, and counts on more than 10,000
employees. Headquartered in Brazil, the company
has already established four manufacturing plants
abroad along with 14 commercial subsidiaries with
yearly production in excess of 8 million motors.
WEG’s philosophy is fundamentally focused on
flexible customer service, quick
response to new product
development, and technological
updates, in addition to competitive
business practices. “The
company’s main goal is to cover
Strategic Alliance in
Mexico
Following the strategy of expanding its
presence in the foreign market, WEG has just
set up a strategic alliance with Mabe, one of the
largest manufacturers of appliance motors in Latin
America. The acquisition package includes assets
and the complementation of the product line. Under
this agreement, WEG will add approximately 1.8 million
motors a year to its current production. Besides supplying
Mabe’s demand for its production lines, WEG production will
also supply motors to other air moving market segments, such as
pumps air moving, refrigeration, general purpose machines, etc.
This strategic alliance meets the company’s goal of expanding its
business in that country. Efforts made there include the
establishment of a branch office, the acquisition of a motor
manufacturing plant, and plans for a new manufacturing plant to
give more production flexibility along with supporting logistics for
North America.
the whole world’s markets by providing world quality
services, outstanding quality, technological
innovation and to be present wherever the customer
is for his ultimate satisfaction and to strengthen the
WEG brand”, states Décio da
Silva. The company is projecting
a sales increase of 20% for 2003.
Weg sales for 2002
are expected to be
20% over 2001.
Exports represent
40% of total
Weg sales.
Strategic Policy
The work to become leader in the
market is performed step by step. “Since its
beginnings, WEG has always carried out its activities
while watching at the future. Investing with long
term vision is always a key factor for the company”,
emphasizes Douglas Conrado Stange, Weg
Exportadora managing director. “To reinvest the
profits means to look after the future
of the company to make it strong and
healthy financially”, explains Douglas.
Based on this policy, besides investing
in machinery, the company invests
heavily in human resources.
WEG’s work force is
oriented to personnel
training, supported by specific
programs applied to all levels in the
organization. Continuously updated with
significant investments in R & D
programs for products and materials, acquisition
of new manufacturing plants, new machinery and
equipment are all concerns for Weg. “Almost every
year we are starting a new manufacturing plant”,
says Douglas C. Stange. In the last five years,
WEG’s investments in new technologies, new
products, improvement of manufacturing
processes, and competitive cost amounted to US$
40 million a year.
One of the key points for WEG’s permanent growth
is to step into the export market, mainly with their
own manufacturing facilities in strategic markets.
Example of such efforts, are the already established
plants in Portugal, Argentina and Mexico.
The acquisition of a motor plant in Portugal will
certainly contribute to the improvement of WEG’s
name in Europe. The main benefits include the
competitiveness of special feature
motors, and the production of
explosive atmosphere, medium,
and high voltage explosion proof
motors. The new plant in Mexico
will start operations by the end of
2003. Completely redesigned
within a modern conception, the
plant will produce three phase low and medium
voltage motors, generators and single-phase
motors. The Mexican market is also quite strategic
for Weg.
Sales increase for
2003 is projected
at 20%.
Mexico
Mexico City City