August 4, 2008
TOKYO, Japan … Diversified industrial manufacturer Eaton Corporation (NYSE:ETN) and Nittan Valve Co. Ltd. (TSE Second Section: 6493) today announced they have reached an agreement to form a joint venture to manage the global design, manufacture and supply of engine valves and valve actuation products to Japanese and Korean automobile and engine manufacturers. Subject to the satisfaction of customary closing conditions, the new company, Nittan Global Tech Co. Ltd., will be headquartered in Tokyo, Japan, and will be 51 percent owned by Nittan Valve and 49 percent owned by Eaton.
In conjunction with the new joint venture, Eaton and Nittan Valve will establish a global network of valve and valve actuation joint ventures, with locations in Poland, South Korea, Taiwan, mainland China and the United States. This global network will supply Japanese and Korean customers.
“We are pleased to expand our 30-year working relationship with Nittan Valve,” said Joseph P. Palchak, chief executive officer – Eaton’s Automotive Group. “This will combine our best resources and apply them collectively to the global needs of Japanese and Korean auto manufacturers. We believe the joint ventures will accelerate growth in our level of business with Japanese and Korean customers.”
“Though Nittan Valve and Eaton’s relationship has been mutually beneficial, it has to date been limited in scope and geographic reach,” said Hisao Takahashi, president, Nittan Valve Co. Ltd. “Our new joint ventures will create an excellent platform for both companies to develop globally and to fully capitalize on our strengths.”
Nittan Valve is a leading Japanese manufacturer of engine valves for four-wheeled and two-wheeled vehicles, with two production bases in Japan as well as production bases in North America, Taiwan, mainland China, Korea, Thailand and Indonesia. In 2007, Nittan recorded non-consolidated sales of 27.3 billion yen and consolidated sales of 36.4 billion yen, of which automotive parts accounted for approximately 70 percent. The numbers of Nittan employees on non-consolidated and consolidated bases are 782 and 1,682, respectively. Nittan’s core engine valves accounted for approximately 50 percent of these automotive parts sales. Of the total 120 million engine valves that Nittan produces, 70 million are manufactured in Japan and the remaining 50 million overseas.
With sales of $1.6 billion in 2007 and 11,000 employees around the world, Eaton’s Automotive Group supplies the automotive industry with critical components that reduce emissions and fuel consumption, and improve vehicle stability and performance. Principal products include engine valves and valve train components, transmission and engine controls, superchargers, locking and limited slip differentials, cylinder heads and fluid conveyance components.
Eaton Corporation is a diversified power management company with 2007 sales of $13 billion. Eaton is a global technology leader in electrical systems for power quality, distribution and control; hydraulics components, systems and services for industrial and mobile equipment; aerospace fuel, hydraulics and pneumatic systems for commercial and military use; and truck and automotive drivetrain and powertrain systems for performance, fuel economy and safety. Eaton has 81,000 employees and sells products to customers in more than 150 countries.
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