June 13, 2011 – Weg and MTOI (M.Torres Ólvega Industrial S.L.) have teamed up to manufacture, assemble, install and commercialize wind turbines, as well as a package of operation and maintenance services to be provided in Brazil.

The technology developed by MTOI allows the power generator to be coupled directly to the turbine shaft, without requiring the application of a gearbox, it said. As a result, there will be a “significant reduction” of components, operational and maintenance costs, it added.

“We are stepping into this segment with a technology that is modern and comparable to what is best in the market. Our partner has already supplied wind turbines to Europe for over 10 years,” said Newton Idemori, Weg Business Development Director.

The companies are also given equal shareholding participation.

The MTOI Group was founded in 1975 to design, develop and manufacture systems for industrial and process automation solutions for the aeronautics, pulp & paper and energy sectors.

The wind turbines will be initially manufactured at WEG Energy manufacturing facilities in Brazil with the first order scheduled to be delivered later this year. It is expected to have 250 employees working directly in manufacturing of this new Weg product.

“In addition to allowing a more direct participation in the wind power generation business, this cooperation agreement will give us the possibility of meeting the growing domestic market demand,” said Weg CEO Harry Schmelzer Jr. “Furthermore, several of our current products such as generators, transformers, drives, electric motors and coatings will make part of the package to be supplied to this market segment.”