Eaton selects Glasgow, Scotland as location of European Shared Finance Services Center

CLEVELAND, OHIO...Eaton Corporation today announced that the company would locate a new European Shared Finance Services Center in Glasgow, Scotland. According to Billie K. Rawot, Eaton Vice President and Controller, who told government, business and civic officials in Glasgow of the decision today, the center will provide financial services to Eaton's manufacturing, administrative and sales facilities throughout Europe.

The center will begin operations in July and be completely staffed within three years. When fully operational, the facility will employ approximately 100 professionals with skills in finance and accounting, information technologies and European languages.

The company is in the final stages of site selection, Rawot said, and indicated that she expects the center to be located in the City-Center section of Glasgow. She said that Eaton will begin recruiting activities for the center immediately and stated that a large number of employees to be hired for the new facility will come from Glasgow. She said that Eaton will also recruit throughout Europe, and will offer positions to current Eaton employees, where appropriate.

Rawot said that Eaton selected Glasgow because of its growing reputation as a financial services center supported by the availability of a skilled and multilingual workforce, and because of the quality of life available to employees in the Glasgow area. She said the efforts of Locate In Scotland, the joint Scottish Office/Scottish Enterprise inward investment agency, were significant in Eaton's decision to locate in Glasgow.

Rawot also announced today the appointment of Erwin Panfil as General Manager of the new Glasgow Center. Panfil, prior to this promotion, was Worldwide Controller for Eaton's Automotive Controls Operations based near Chicago. He was born in Germany, and his 31-year tenure with Eaton has included lengthy assignments in Germany, the U. K. and the U.S.

Eaton's action to locate a center in Scotland stems from a decision made by the company last year to reengineer its North American and European financial functions by centralizing financial transaction activities, and by so doing, reduce administrative costs. The reengineering program involves the implementation of standardized financial processes and common financial systems, as well as the consolidation of transaction processing activities. The company said it anticipates total savings of about $40 million (U.S.) annually from developing Shared Finance Services Centers in both Europe and the U.S. Rawot said that the Shared Finance Services Center to be located in the United States will be announced in the near future.

Eaton has 8,300 employees at 43 facilities in nine European countries, including the U. K., France, Germany, Italy, the Netherlands, Monaco, Spain, Poland and Croatia. Financial services for all of the facilities will be centralized in Glasgow.

Eaton Corporation is a global manufacturer of highly engineered products which serve vehicle, industrial, construction, commercial and aerospace markets. Principal products include truck transmissions and axles, engine components, hydraulic products, electrical power distribution and control equipment, ion implanters and a wide variety of controls. Headquartered in Cleveland, Ohio, USA, the company has 54,000 employees and 155 manufacturing sites in 26 countries around the world. Sales for 1996 were $7 billion.



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William Hartman, vice president, Investor Relations