CLEVELAND ... Diversified industrial manufacturer Eaton Corporation (NYSE:ETN) announced today it has signed an agreement to form a joint venture with ZhongShan MingYang Electrical Appliances Co., Ltd. (MingYang) to manufacture and market switchgear components in southern China.
Eaton will have 51 percent ownership of the joint venture, which will be called Eaton Electrical (ZhongShan) Co., Ltd. The joint venture is expected to receive Chinese government approval in the next few months.
The joint venture will manufacture medium-voltage switchgear components, including circuit breakers, meters and relays. MingYang's switchgear business will purchase circuit breakers from the joint venture or from Eaton. The products manufactured by the joint venture will also be sold through MingYang's current distribution channels.
"We are pleased to join with MingYang, the recognized switchgear leader in southern China," said Randy W. Carson, Eaton senior vice president and president, Electrical Group. "This joint venture reflects Eaton's global strategy of expanding in growth markets such as China through relationships with industry-leading companies and customers."
MingYang is located in ZhongShan City in Guangdong province, where the joint venture will be based. MingYang has sales offices throughout the country.
Eaton Corporation is a diversified industrial manufacturer with 2004 sales of $9.8 billion. Eaton is a global leader in electrical systems and components for power quality, distribution and control; fluid power systems and services for industrial, mobile and aircraft equipment; intelligent truck drivetrain systems for safety and fuel economy; and automotive engine air management systems, powertrain solutions and specialty controls for performance, fuel economy and safety. Eaton has 56,000 employees and sells products to customers in more than 125 countries.