WEG announces Joint Venture for the manufacturing of wind turbines
WEG S.A. (Bovespa: WEGE3 / OTC: WEGZY) announced today that has signed a Memorandum of Understanding and a Technology Transfer Agreement of with the M. Torres Olvega Industrial (MTOI).
The M Torres Group was founded in 1975 to design, develop and manufacture systems for industrial and process automation solutions for the aerospace, paper and energy sectors.
The technology agreement between WEG and MTOI will result in the creation of a joint venture, with equal participation, for manufacturing, assembling, installing and marketing of wind turbine generators, as well as operation and maintenance services, in Brazil.
"This partnership, in addition to allowing a more direct presence in the wind power generation business, will give us the agility to meet the growing domestic market demand," explains Harry Schmelzer Jr., WEG¿s CEO. "Furthermore, several of our products, such as generators, transformers, drives, electric motors and coatings, are part of the package that we will provide," he added.
The wind turbine generators will be initially manufactured in WEG¿s main industrial facilities in Jaraguá do Sul, State of Santa Catarina. The project should see the delivery of the first units later this year. It is expected to have 250 employees working directly in manufacturing these equipments.
The technology developed by MTOI allows for the electric generator to be directly coupled to the shaft of the turbine, without the need of gearboxes. This represents a competitive advantage, as it reduces the number of components and hence the possibility of operational problems and maintenance costs. "We are entering this segment with a technology that is modern and comparable to the best in the market. Our partner has wind turbine generators in operation in Europe for over 10 years" said Newton Idemori, Business Development Officer at WEG.
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Statements about Future Expectations
Some statements contained herein may be projections or statements about future expectations. Such statements are subject to known and unknown risks that may cause such expectations not to come true or be substantially different from the expected. Those risks include, among others, changes in the future demand for the products of the company, changes in the factors that affect the domestic and international prices of the products, changes in the cost structures, changes in the markets, changes in the prices practiced by the competitors, exchange rate variations, changes in the political-economical scenario in Brazil and in emerging and international markets.