By Brazil Stock Guide – WEG SA (B3: WEGE3; OTC: WEGZY) plans to invest $165 million, about R$840 million, to expand generator production capacity in North America as demand from US data centers increases, the Brazilian industrial equipment maker said on Sept. 28.
The investment will be carried out in two phases and is aimed at power-generation solutions for critical applications in the US. WEG said the project is also part of its strategy to expand businesses incorporated through the acquisition of Marathon.
Mexico First Phase
WEG will spend $24 million in the first phase to acquire and retrofit an industrial building next to its Quma I Industrial Site in Atotonilco de Tula, Mexico. The facility will be dedicated to generator assembly and is expected to begin operations in the second quarter of 2027. 71138fa0-dc57-4b01-83f6-b3ea749…
The project gives the company additional manufacturing capacity closer to the North American market as electricity demand from data centers continues to drive investment in generation infrastructure.
Two New Industrial Facilities
The second phase accounts for most of the planned spending. WEG will invest $141 million to build two new industrial facilities at a location in North America that has yet to be selected.
The facilities will use a vertically integrated production structure covering processes including laminations, low- and medium-voltage windings, shafts and frames. WEG said the configuration is intended to improve operational efficiency and competitiveness.
Capacity to Rise Fivefold
WEG expects the second phase to be completed in 2030. Once the expansion is finished, the company projects global production capacity of about 50 generators a day across factories in Mexico, the US, Brazil and China, compared with about 10 a day currently.
The investment extends WEG’s expansion in the generator business following the Marathon acquisition and increases its exposure to infrastructure spending tied to data-center growth in the US.
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