Washington, D.C., July 27, 2010—IFC,
a member of the World Bank Group, will provide a $25 million loan to WEG,
a Brazilian high-efficiency electric motor manufacturer, to help build
a greenfield manufacturing plant in Hosur, India, creating new jobs and
bolstering India’s manufacturing capacity.
The new plant will have a capacity of about 250 high- and medium-voltage
motors and generators a year and will generate direct employment for more
than 250 people. Since 2004, WEG has exported motors and generators
manufactured in Brazil to the Indian market, and the plant is one of its
most significant investments outside of Latin America to date.
Harry Schmelzer Jr., Executive President of WEG, said, “This investment
is a big step forward in WEG’s international strategy. The new Hosur
plant will improve the international distribution capacity of the company’s
products, and will improve production capacity in selected markets. It
also will build on the manufacturing structures we already have in place
in Brazil, Argentina, Mexico, Portugal, and China; cementing our position
as one of the biggest players in the world market of industrial electrical
In view of India’s massive infrastructure requirements, the country needs
to ramp up its capacity to manufacture components essential to strengthening
the local supply chain for infrastructure development. The motors
and generators produced by WEG will be used across a wide range of applications
in India, including irrigation, water distribution, wastewater treatment
systems, and power generation and transportation systems.
The WEG motors are among the more energy efficient available in their respective
classes and operation of the motors in a given year reduces carbon emissions
when compared to existing machinery or installation of comparable equipment.
Dimitris Tsitsiragos, IFC Director for Global Manufacturing and Services,
said, “WEG is bringing high value-added manufacturing into a new market,
and for a product which is an important building block in infrastructure
and irrigation projects. In addition to creating employment and transferring
technology, the South-South origin of the investment contributes to diversifying
India’s sources of foreign investment.”
IFC, a member of the World Bank Group, is the largest global development
institution focused on the private sector in developing countries. We create
opportunity for people to escape poverty and improve their lives. We do
so by providing financing to help businesses employ more people and supply
essential services, by mobilizing capital from others, and by delivering
advisory services to ensure sustainable development. In a time of global
economic uncertainty, our new investments climbed to a record $18 billion
in fiscal 2010. For more information, visit www.ifc.org.
WEG is a Brazil-based multinational company founded in 1961. WEG manufactures
capital goods equipment and is among the largest manufacturers of electrical
and electronic equipment in the world, producing electric motors, generators,
transformers and electronic and electro-mechanical command and control
devices. For more information, visit www.weg.net.