WEG Strengthens Position In Turkey’S Growing Electric Motor Market
Date
9/12/2024 3:28:43 PM
(MENAFN- The Rio Times) WEG S.A. has announced the Acquisition of Volt Electric Motors, a prominent Turkish manufacturer, for US$88 million (R$498.9 million).
This purchase aims to boost WEG's presence in the Middle East and nearby areas. Moreover, it's part of WEG's plan to become a key player in the global electric motor market.
Volt Electric Motors, founded in 1966, adds great value to WEG's lineup. The company can make 1 million motors yearly.
In 2023, Volt's revenue reached US$70 million (R$396.5 million) with an 18.5% EBITDA margin.
Furthermore, this deal gives WEG a base to serve Middle Eastern and Eastern European markets.
Turkey's electric motor market is set to grow rapidly. Experts predict a 7.3% yearly growth from 2024 to 2030.
This increase comes from more industrial automation and energy efficiency needs. Thus, WEG's timing for buying Volt seems perfect. The Volt purchase is just one part of WEG's expansion plan.
In September 2023, WEG also bought Regal Rexnord's motor business for $400 million (R$2.27 billion). This deal brought in famous brands and 2,800 workers across seven countries.
WEG Strengthens Position in Turkey's Growing Electric Motor Market
These purchases show WEG's aim to lead the global electric motor market. Since 2020, WEG has grown its share by 2.5% in low voltage AC motors.
The company managed supply chain issues better than rivals after the pandemic. WEG's growth matches the world's focus on electric power and energy saving.
For example, Turkey plans to make over two million electric cars by 2030. Such goals create good conditions for companies like WEG.
As WEG adds these new businesses, market watchers are paying close attention. The company could double output in some new factories. This increase might greatly boost WEG's global market share.
WEG's journey from a small Brazilian firm to a world leader shows the power of smart buying and market insight. As the world turns to electric power, WEG's recent moves put it at the front of this change.
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