WEG: How three engineers started from scratch in 1961 to build a global industrial motor powerhouse

Origin

In 1961, the small city of Jaraguá do Sul in the Brazilian state of Santa Catarina had a weak industrial base, with motors almost entirely imported and delivery times slow. Electrician Werner Ricardo Voigt, bank administrator Eggon João da Silva, and mechanic Geraldo Werninghaus decided to manufacture motors themselves. With a capital of only 3,600 cruzeiros and 8 employees, they founded Eletromotores Jaraguá in a small workshop. They traveled by bus to visit customers door-to-door with samples, successfully breaking into the market by offering local alternatives to imports.

Milestones

Turning Points

• 1970: Established quality policy based on ABNT/IEC standards and achieved first exports, starting the path to internationalization.
• 1971: Listed on the Brazilian stock exchange, using IPO financing to break through workshop-scale capacity bottlenecks.
• 1980s: Brazil's economic crisis forced WEG to pivot from single-motor dependency to diversified products and vertical integration.
• Late 1990s: After securing 80% domestic market share, shifted focus to overseas factory construction and M&A.
• 2025: Surpassed ABB with approximately 16% global market share, becoming the world leader in low-voltage industrial motors.

Failures & Pitfalls

• Initial capital was only 3,600 cruzeiros, with shortages of raw materials and skilled labor, eventually addressed by founding the Centroweg training center.
• 1980s hyperinflation and economic crisis in Brazil caused domestic orders to shrink, nearly crippling the single-motor business.
• 1999: Founder Geraldo Werninghaus died in a car accident, creating a risk of a gap in management and production succession.
• Early years: Faced competition from imported motor brands in the local market; market expansion was slow, relying on quality reputation to gradually overtake competitors.

Core Data

• 2026 Market Cap：Approx. 217 billion BRL (approx. 41 billion USD) (Public data, independent verification not performed)
• 2026 Annual Revenue：Approx. 40 billion BRL (Public data, independent verification not performed)
• Global Low-Voltage Industrial Motor Share：Approx. 16% (2025 Omdia data, ABB at 15.5%) (Public data, independent verification not performed)
• Brazilian Domestic Motor Market Share (Late 1990s)：Approx. 80% (Public data, independent verification not performed)
• Manufacturing Plants and Employees：26 plants across 11 countries, over 17,000 employees (Public data, independent verification not performed)
• Global Reach：Products sold in over 110 countries (Public data, independent verification not performed)
• Initial Capital：3,600 cruzeiros (approx. 500 BRL today) (Public data, independent verification not performed)
• IPO Year：1971 (Public data, independent verification not performed)

Competitors / Peers

In the global low-voltage industrial motor sector, WEG's biggest competitors are ABB and Siemens. 2025 Omdia data shows ABB following WEG with a 15.5% share. Nidec, Wolong Electric, and TECO also compete closely in the low-to-medium voltage motor and variable frequency drive sectors. Unlike the full-category electrical giant path of ABB and Siemens, WEG uses Brazil as its manufacturing home base, achieving cost leadership through vertical integration and deep cultivation of emerging markets. It competes globally on price-performance and delivery times, while simultaneously pressuring ABB's traditional strongholds through acquisitions in motion control and automation.