Eaton, JC Corporation form joint venture in Korea to manufacture automotive controls
CLEVELAND, OH... Eaton Corporation and JC Corporation, a Korean automotive components manufacturer, have agreed to merge elements of their existing automotive controls businesses in Korea into a new joint venture. Eaton will own 51 percent of the new business.
JC Corporation, a specialist in automotive controls headquartered in Pusan, supplies all of the major Korean OEM's. JC brings to the joint venture strong marketing and manufacturing capabilities within Korea.
Eaton Chairman Stephen R. Hardis said, "This new relationship with JC Corporation in Korea will permit us to efficiently provide the latest in automotive controls design and technology to important customers in the Korean automotive industry. It is further evidence of Eaton's commitment to invest in, and grow with, the Korean economy."
Manufacturing for the joint venture, known as Eaton JC Controls Company, will start in Pusan and be located in one of JC's subsidiary company buildings. Primary products will include electro-pneumatic and hydraulic valves, thermostatic expansion valves, motor actuators, electrical switches and cold thermostats. OEM customers will include Hyundai, Daewoo, Kia, and Ssangyong.
Robert J. McCloskey, senior vice president - Controls & Hydraulics, who was in Seoul for the announcement, said, "We have solid growth expectations from this joint venture. The Korean automotive industry, already the fifth largest in the world, has excellent growth prospects. We believe the design and manufacturing expertise of this joint venture will make it an active participant in that robust growth." He added that the joint venture is expected to have sales of $14 million in its first year and, if conditions continue as forecast, $70 million in sales in five years.
The joint venture will open an Engineering/Sales Design Center in the Seoul area which will support the Korean automotive industry and establish a critical link for worldwide support for the Korean OEM's. The new design center will be linked to the other worldwide Eaton Automotive Controls Engineering Centers in Europe and the United States, and will have full access to worldwide Eaton technology.
Earlier this year Eaton announced it would open a new facility near Seoul to build limited slip differentials for Korean automakers Hyundai and Kia. Eaton also recently opened a facility in Pyungtaek City to manufacture ion implanters for the semiconductor market. Eaton's sales in the Korea are forecasted to exceed $100 million in 1997. By the year 2000, the projected sales volume is expected be more than $250 million. Eaton's strategic goal is to achieve $10 billion in sales and earnings of $8 per share by the year 2000 through new product introductions, increased international expansion and strategic acquisitions.
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, engine components, hydraulic products, ion implanters and a wide variety of automotive controls. Headquartered in Cleveland, the company has 55,000 employees and 155 manufacturing sites in 26 countries. Sales for 1996 were US $7 billion.