São Paulo – Brazilian company WEG announced this Monday (18) the signing of binding documents to form a joint venture with CevitalGroup from Algeria to produce and sell electric motors for washing machines. WEG is a global engine manufacturing company based in the state of Santa Catarina, Brazil. The joint venture will initially focus on the North African market, including Algeria.
The new company, called WEG Algeria Motors SpA, will have a 51% stake from WEG and a 49% from Cevital. The company’s operations will be in the city of Setif. Initially, the new company will produce motors for washing machines manufactured by Cevital and other regional partners. Production is expected to start in the last quarter of 2022.
WEG informed it would invest in technology and expertise to manufacture motors in Algeria. The company, founded in 1961, offers solutions in electrical machinery, automation, and paints for different sectors, from infrastructure to steel, pulp and paper, oil, gas, and mining, among others. The company has industrial operations in 12 countries and a commercial presence in 135 nations, with net sales of BRL 23.5 billion last year.
The Algerian group was founded in 1971 and operates through subsidiaries in agriculture, retail, services, and industry sectors. Cevital produces and distributes home appliances in regions such as Europe, the Middle East, North Africa, and Asia-Pacific.
“With this partnership, we will expand our share in the international market for electric motors for the home appliance segment, taking advantage of our technology and geographic diversification to capture new commercial opportunities,” said the superintendent director of Commercial Motors and Appliance at WEG, Julio Cesar Ramires in a company release.
Translated by Elúsio Brasileiro
