WEG Opens New Plant in India

WEG S.A. (Bovespa: WEGE3) announced today the inauguration of its electric motor plant in India. The new unit begins its production by supplying MGF 630 induction motors to be installed on water pumps manufactured by Kirloskar Brothers Limited (KBL) for the Bangalore Water Supply Scheme project which supplies drinking water in Bangalore. The estimate for the delivery of those machines between February to April 2011.

WEG India will produce synchronous induction motors and medium and high voltage synchronous generators. The plant is in Hosur, Tamil Nadu, near Bangalore. The total area covers 170 thousand square meters and the facilities stand on 32 thousand square meters.

WEG¿s CEO, Harry Schmelzer Jr. says that, "WEG India was conceived to meet the demand of Asia, Middle East, Africa and Australia and advances our internationalization strategy by strengthening our capacity of international distribution of products and improving production capacity in selected markets always maintaining the high quality standard of our products and services.

The unit has already received approximately US$ 60 million in investments generating around 250 direct jobs. This number will reach 600 by the end of 2011. At the end of 2013, when operating at full capacity, the unit will be able to produce up to 320 machines a year. All products are customized with a high level of technological development and the same design and quality of the products made in Brazil.

WEG also announced that WEG India Director of Operations, Mr. Eduardo Nobrega, will also be the Industrial Director of WEG Energy and will now be responsible for the production areas of the manufacturing units of this business unit in Jaraguá do Sul (SC) and São Bernardo do Campo (SP) in Brazil.

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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

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