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Eaton announces actions to integrate Boston Weatherhead business
Tue Jan 14, 2003 -
CLEVELAND …Diversified industrial manufacturer Eaton Corporation (NYSE:ETN) today announced a number of actions to integrate the Boston Weatherhead business into Eaton's Fluid Power segment.
"These initiatives, which involve both Boston Weatherhead and Eaton Fluid Power facilities, will improve efficiency, better utilize capacity, eliminate redundancies, and improve service -- strengthening Eaton’s competitive position," said Craig Arnold, senior vice president and group executive.
Eaton completed the purchase of the Boston Weatherhead business from Dana Corporation in November 2002 as part of its strategy to be a full-capability supplier to the fluid power industry.
The strong Boston Weatherhead brand names, channel relationships and complementary products will enable Eaton to become a more significant partner for all existing and new customers.
The integration actions include the following:
• Eaton will close its hose manufacturing plant in Norwood, N.C., by the end of the fourth quarter 2003, and consolidate production into the Newbern, Tenn., hose plant acquired in the Boston Weatherhead purchase.
• The hose manufacturing plant in Ludlow, Mass., which was also part of the Boston Weatherhead acquisition, will close in the third quarter 2003 and production will move to Eaton’s Middlesex, N.C., hose plant.
• The administrative office located in Brentwood, Tenn., which served as the Boston Weatherhead business headquarters under Dana's ownership, will be closed in the third quarter 2003. The various administrative functions of that office will be absorbed into several locations, including the Hydraulics operations headquarters in Eden Prairie, Minn.
• The Boston Weatherhead metal fittings and hose assembly operations located in Dana Corporation’s Pelahatchie, Miss., and Antwerp, Ohio, facilities will move to a new facility being acquired by Eaton in Gainesboro, Tenn., and will be managed by the existing leadership of the Eaton Hydraulics plant located in Gainesboro.
“We have made these difficult decisions and take these actions with care and concern for all of the individuals involved,” said Arnold. “The decisions were based on careful study of the functions, production capabilities, processes and capacity of each Eaton and Boston Weatherhead facility. Plans are to complete most of these actions by the end of 2003. No disruptions in customer shipments or service are anticipated.”
Eaton's employees received the news today in meetings with Eaton senior management. Employees will receive at least 60 days notice in advance of their positions being eliminated. The Eaton severance package, which includes career transition services, will be provided to all eligible employees.
Overall, the acquisition of the Boston Weatherhead business supports Eaton’s fluid power strategy to be a global leader in mobile and industrial hydraulics and to be a complete system provider to the fluid power industry.
Eaton is a global $7.3 billion diversified industrial manufacturer that is a leader in fluid power systems; electrical power quality, distribution and control; automotive engine air management and fuel economy; and intelligent truck systems for fuel economy and safety. Eaton has 48,000 employees and sells products in more than 50 countries.