Eaton announces electrical equipment joint venture in Argentina
CLEVELAND, OH.... Eaton Corporation and Electro Integral Sudamericana (EISSA) today jointly announced the formation of Cutler-Hammer de Argentina (CHA) to manufacture and distribute electrical equipment in Argentina.
Under terms of the agreement, Eaton will own 75 percent of CHA, which will be located in Buenos Aires. The new venture is expected to have 55 employees and sales approaching $10 million in its first full year of operation.
CHA, which will include all of the commercial assets of EISSA, is being established to manufacture and distribute low- and medium-voltage switchgear. It also will assemble electrical products to be used for industrial controls and power distribution in such industries as food processing, manufacturing, construction and petrochemicals.
"This joint venture is another key step for the corporation, and supports the global expansion component of Eaton's growth initiative," said Joseph L. Becherer, Senior Vice President Cutler Hammer. "South America is one of the world's high growth markets, and this acquisition strengthens both the electrical equipment products we are able to offer, and our product distribution system there.
"This acquisition not only is a good strategic fit, we have the advantage of a long standing, excellent business relationship with the management team and employees of the EISSA operations. We believe this relationship will provide the leadership necessary for our continued growth in Argentina," Becherer said. CHA will become part of Cutler-Hammer's existing South American operations.
The CHA transaction is the second acquisition announced recently in Eaton's Cutler-Hammer business, and supports the parent company's growth initiative that includes reaching $10 billion in sales by the year 2000 through global expansion, new product development and acquisitions. On August 1, Eaton announced the purchase of Tycor International Corporation, a manufacturer of power conditioning and surge suppression devices, for an undisclosed amount.
Eaton's Cutler-Hammer business is one of the world's leading suppliers of power distribution equipment, electrical control products and industrial automation equipment serving the industrial, automotive, construction and commercial markets. Control and automation equipment includes contactors and motor starters, variable speed drives, photoelectric and proximity sensors, PanelMate video control panels, microprocessor-based control and protection devices, as well as pushbuttons and switches. Power distribution equipment includes circuit breakers, substations, switchgear, panelboards, load centers, transformers and safety switches.
Eaton Corporation is a global manufacturer of highly engineered products which serve industrial, vehicle, construction, commercial and semiconductor markets. Principal products include electrical power distribution and control equipment, truck transmissions and axles, engine components, hydraulic products, ion implanters and a wide variety of controls. Headquartered in Cleveland, the company has 55,000 employees and 155 manufacturing sites in 26 countries around the world. Sales for 1996 were $7 billion.