WEG signs agreement for new Joint Venture in Algeria
Global motor manufacturer WEG has signed an agreement with Cevital Group to create a Joint Venture for electric motor production in Algeria. The company will participate in the production and sale of electric motors for washing machines, with an initial focus on the Algerian and North African market.
WEG has announced to its shareholders and the general market that it has just signed binding documents with Cevital Group, a conglomerate of companies based in Algeria, for the creation of a Joint Venture (JV) that will operate in the production and sale of electric motors for washing machines, with an initial focus on the Algerian and North African market.
Founded in 1971 in Algeria, Cevital Group operates through its subsidiaries in different sectors such as agriculture, retail, services and industry, including the production and distribution of home appliances, serving several regions such as Europe, the Middle East, North Africa, and Asia-Pacific.
The new company is named WEG Algeria Motors SpA and will have a 51 per cent share by WEG Group and 49 per cent by Cevital Group. The manufacturing operations will be located in the city of Setif, initially producing motors used in washing machines produced by Cevital Group and other customers in the region. WEG investments will be mainly concentrated on technology and expertise of electric motor manufacturing for home appliances in Algeria. Production is scheduled to start in the fourth quarter of 2022.
“With this partnership, we will be able to expand our global market share of electric motors for the home appliance segment,” said Julio Cesar Ramires, managing director of WEG motors commercial and appliance business unit. “Working with Cevital Group will allow us to take advantage of our leading technology and geographical diversification to capture new commercial opportunities.”
The partnership offers new possibilities for WEG on the global market, whilst allowing customers in Algeria and North Africa to benefit from the combined experience and knowledge of WEG and Cevital Group. This development further strengthens WEG’s position to offer leading products and services and to support its customer base worldwide.
To find out more, visit the WEG website here.
