Get the right experience for you. Please select your location and investor type.
Spotlight on sustainability: WEG
Portfolio Manager, Sujaya Desai, discusses energy efficient electrical motor manufacturer, WEG.
As part of our Spotlight on sustainability series, Sujaya Desai introduces WEG, an electric motors manufacturer based in Brazil.
Company information as at 30 September 2023
More information available on our Portfolio Explorer tool.
- Company Information
- Sustainable Development Goals
- Climate Solutions
- Human Development Pillars
Company Profile
Energy efficient electric motors, transformers, renewable energy solutions and industrial coatings.
Stewardship
Family - Founded in 1961 by Werner Ricardo Voigt, Eggon Joao da Silva and Geraldo Werninghaus - the company remains majority owned by the founding families.
Areas for engagement
- Circular economy and recyclability of products.
What we like
- WEG has a strong brand, global scale and manufacturing footprint and its vertically integrated business model allows for easier customisation of products.
- The company has invested intelligently in the development of wind and solar energy technologies, smart grid systems and energy efficient motors, the company is well placed to benefit from major trends in energy efficiency and renewable energy.
- They have increased the diversity of their product range and geographies over the years and are positioned well to gain market share from the growth in energy efficiency motion drive solutions, renewable power generation and electric mobility.
Risks
We believe that risks for the company include cyclicality of end-markets and tax rates.
7. Affordable and clean energy
WEG manufacture and sell renewable energy solutions used in solar and wind power generation, hydroelectric power plants and biomass helping society to shift away from fossil fuel energy production. In 2022, WEG provided 6,300 MWA in renewable energy solutions.
9. Industry Innovation and Infrastructure
WEG also manufacture and sell energy efficient electric motors, which help their customers reduce their energy requirements and greenhouse gas emissions. Their electric traction systems can be used by trucks, buses, vans, electric forklifts, trains, monorails and shipping.
Distributed Solar Photovoltaics
Contribution Type
Direct Contribution
Onshore Wind Turbines
Contribution Type
Direct Contribution
Utility-Scale Solar Photovoltaics
Contribution Type
Direct Contribution
Distributed Energy Storage
Contribution Type
Direct Contribution
Electric Cars
Contribution Type
Direct Contribution
Description
WEG contributes across the renewable energy value chain by manufacturing solutions for generation, transmission, distribution and storage for wind and solar. In 2022, they provided 6,300 MWA in renewable energy solutions.
WEG supplied its first wind turbines in 2013 and by 2019 had become one of the largest suppliers of products for solar power plants in Brazil. Around 80% of the equipment they supply in Brazil is for renewable energies. In 2022, they announced the launch of a new wind turbine platform which would be the largest machine to operate in Brazil and would start operating in 2024. The 7MW turbine provides a smoother connection to the electrical grid and is also capable of providing energy even when there is no wind.
In 2019, the company was also a participant in Volkswagen's e-Delivery manufacturing consortium for the first 100% electric light truck in Brazil, responsible for supplying the electric powertrain, as well as motors and inverters for auxiliary systems.
They also launched electric vehicle charging stations - WEMOB - designed for home and parking lot use and have also partnered with automotive OEMs in electric mobility projects, including electric buses.
Energy - Physical infrastructure
Contribution Type
Direct Contribution
Rationales
WEG manufactures and sells efficient electrical motors, which help customers both reduce their energy requirements and reduce their greenhouse gas emissions. In 2019 they became one of the largest suppliers of products for solar power plants in Brazil. They are also one of the main suppliers of wind turbines in the Brazilian market and supply full solutions for hydroelectricity.
The information provided on this webpage does not constitute any investment advice or recommendation with regards to any investment product/services.
Important Information
The information contained within this material is generic in nature and does not contain or constitute investment or investment product advice. The information has been obtained from sources that First Sentier Investors (“FSI”) believes to be reliable and accurate at the time of issue but no representation or warranty, expressed or implied, is made as to the fairness, accuracy, completeness or correctness of the information. To the extent permitted by law, neither FSI, nor any of its associates, nor any director, officer or employee accepts any liability whatsoever for any loss arising directly or indirectly from any use of this material.
This material has been prepared for general information purpose. It does not purport to be comprehensive or to render special advice. The views expressed herein are the views of the writer at the time of issue and not necessarily views of FSI. Such views may change over time. This is not an offer document, and does not constitute an investment recommendation. No person should rely on the content and/or act on the basis of any matter contained in this material without obtaining specific professional advice. The information in this material may not be reproduced in whole or in part or circulated without the prior consent of FSI. This material shall only be used and/or received in accordance with the applicable laws in the relevant jurisdiction.
Reference to specific securities (if any) is included for the purpose of illustration only and should not be construed as a recommendation to buy or sell the same. All securities mentioned herein may or may not form part of the holdings of First Sentier Investors’ portfolios at a certain point in time, and the holdings may change over time.
In Hong Kong, this material is issued by First Sentier Investors (Hong Kong) Limited and has not been reviewed by the Securities & Futures Commission in Hong Kong. In Singapore, this material is issued by First Sentier Investors (Singapore) whose company registration number is 196900420D. This advertisement or material has not been reviewed by the Monetary Authority of Singapore. First Sentier Investors, FSSA Investment Managers, Stewart Investors, RQI Investors and Igneo Infrastructure Partners are the business names of First Sentier Investors (Hong Kong) Limited. First Sentier Investors (registration number 53236800B), FSSA Investment Managers (registration number 53314080C), Stewart Investors (registration number 53310114W), RQI Investors (registration number 53472532E) and Igneo Infrastructure Partners (registration number 53447928J) are the business divisions of First Sentier Investors (Singapore).
First Sentier Investors (Hong Kong) Limited and First Sentier Investors (Singapore) are part of the investment management business of First Sentier Investors, which is ultimately owned by Mitsubishi UFJ Financial Group, Inc. (“MUFG”), a global financial group. First Sentier Investors includes a number of entities in different jurisdictions.
MUFG and its subsidiaries are not responsible for any statement or information contained in this material. Neither MUFG nor any of its subsidiaries guarantee the performance of any investment or entity referred to in this material or the repayment of capital. Any investments referred to are not deposits or other liabilities of MUFG or its subsidiaries, and are subject to investment risk, including loss of income and capital invested.
Investment involves risks. This website is issued by First Sentier Investors (Singapore) whose company registration number is 196900420D and has not been reviewed by the Monetary Authority of Singapore. First Sentier Investors (registration number 53236800B) and Stewart Investors (registration number 53310114W) are the business divisions of First Sentier Investors (Singapore).
Copyright © 2024 Stewart Investors.