WEG (), in the state of Santa Catarina. The new unit, which should be ready in the second half of 2027, will be dedicated to the production of BESS, battery energy storage systems.
The market positively evaluated the company’s initiative, which should boost the electrified sector in the country. At around 3:57 pm, WEG shares had risen robustly by 3.07%, being traded at R$52.98.
The installation will be WEG’s most advanced in the segment, with expected annual production of 2 Gigawatt-hours and automated assembly lines. According to the company, the project will receive financing of R$280 million from BNDS, through the Mais Inovação program, in partnership with FINEP.
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For XP, with the unit fully functioning at maximum capacity, BESS could become one of the incremental contributors to WEG’s revenue growth. This growth will be sustained, especially, by the development of electrification in the country and the advancement of the energy transition.
“We continue to see WEG well positioned to capture value from the internalization of services related to electrification, with mobility solutions gradually gaining relevance in its diversified portfolio”, explain the analysts. The estimate is that the share should reach single digits in the company’s revenues by 2028.
According to BTG Pactual, WEG will be put to the test, as the energy consumption structure increases and demand for more resilient networks grows. Competition is also expected to intensify, with the entry of external players, such as China. According to analysts, Chinese products have a price advantage, while WEG has a geographic advantage, with distribution channels throughout Brazil.
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“This industry is at a very early stage in Brazil, so the advantages of scale should only become clearer over the next few years”, he corroborates.
The new WEG unit will have a laboratory dedicated to testing, developing and qualifying products, with the aim, among many others, of reducing the time to launch new solutions. The factory will also have a substation and power to simulate real operating conditions.
