Brazil's renewable energy manufacturing gearing up for growth

The company has until now focused mainly on producing equipment for local hydroelectric and biomass plants

Content Dam Elp Online Articles 2014 07 Weg Logo

Brazilian manufacturer Weg plans to increase its participation in the country's burgeoning wind and solar power supply chains, according to Business News Americas.

The company has until now focused mainly on producing equipment for local hydroelectric and biomass plants.

But the emergence of wind energy as Brazil's fastest-growing energy source and new opportunities for solar power growth have prompted Weg to diversify its operations.

Weg Logo

"If it is attractive, we will participate more intensively in the wind sector," Weg's investment relations manager Luiz Fernando Oliveira said during an investor webcast.

"We have the capacity to increase our presence. If it isn't so attractive, we will look at other types of machinery."

Weg signaled its interest in wind expansion in April by agreeing to supply 46 turbines for the 97 MW Energia dos Ventos complex in Brazil's northeastern state of Ceará.

The Jaraguá do Sul-based firm also provided equipment for Neoenergia's 400 kW solar plant on the island of Fernando de Noronha.

Weg's deputy CEO Sérgio Schwartz said the company had also found a niche in manufacturing engines for electric buses. But future investment in the area would hinge on greater government incentives and access to credit, he added.

Weg reported a second-quarter profit of $103 million, up 11 percent on the year-ago period. Net operating revenue hit $820 million, up 7.2 percent year-on-year.

More in Tools & Supplies