UPDATE 1-Brazil motor maker WEG to form Algerian venture with Cevital Group
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SAO PAULO, July 18 (Reuters) - Brazil's WEG SA on Monday said it has signed binding documents with Algeria's Cevital Group to create a joint venture that will produce electric motors for washing machines.
The new company, WEG Algeria Motors SpA, will have an initial focus on the Algerian and North African markets, WEG said in a securities filing, noting that it will own 51% of the business and Cevital will hold the remaining 49%.
WEG Algeria's operations will be located in the city of Setif, initially producing motors to be used in washing machines manufactured by Cevital and other customers in the region, it said.
Production is expected to start in the fourth quarter of 2022.
WEG said it will make investments in technology and know-how to produce electric motors for home appliances in the African country. The amounts were not disclosed.
(Reporting by Gabriel Araujo Editing by David Goodman)
