Eaton Corporation and Shanghai Aircraft Manufacturing Co., Ltd. Announce Joint Venture Agreement to Support COMAC C919 Aircraft Platform

Date: July 12, 2010

Program Value Expected to Total $1.8 Billion

SHANGHAI … Diversified industrial manufacturer Eaton Corporation (NYSE:ETN) and Shanghai Aircraft Manufacturing Co., Ltd. (SAMC), a subsidiary of Commercial Aircraft Corporation of China (COMAC), today announced they have signed a joint venture agreement to support the COMAC C919 single-aisle commercial aircraft program. The formation of the joint venture, the first for the COMAC enterprise with a foreign company, is subject to regulatory approvals and customary closing conditions. 

The planned joint venture will be based in Shanghai and will focus on the design, development, manufacturing and support of fuel and hydraulic conveyance systems for the global civil aviation market. Total program value for C919 conveyance systems, including aftermarket opportunities, is estimated at $1.8 billion, based on an anticipated volume of 2,500 aircraft.

“This joint venture demonstrates Eaton’s continued commitment to expand its overall presence in China,” said Craig Arnold, Eaton vice chairman and chief operating officer – Industrial Sector. “The comprehensive conveyance system engineering and manufacturing capabilities that will reside in our joint venture with SAMC will strengthen Eaton’s presence in China’s aviation industry. We look forward to working with SAMC to develop this unique full-service capability for the global civil aviation market.”

Today’s announcement follows a joint venture framework agreement signed by the two companies in December 2009. SAMC will own a 51 percent interest in the new joint venture; Eaton will own a 49 percent interest.

Eaton employs a workforce of 10,000 and has 27 operations in China. Eaton’s Asia-Pacific regional office is in Shanghai.

Shanghai Aircraft Manufacturing Co. Ltd. (SAMC) is a subsidiary of Commercial Aircraft Corporation of China (COMAC). As the assembly and manufacturing center of COMAC, Shanghai Aircraft Manufacturing Co. Ltd. (SAMC) is mainly engaged in the manufacturing, final assembly, parts assembly, delivery, maintenance of the commercial aircraft parts, pilot flight and other services.
Eaton’s Aerospace Group is a leading supplier of hydraulic, electro-hydraulic pump and generator products and integrated systems; electric motors; aircraft flap and slat systems; fluid conveyance products and systems; nose wheel steering systems; integrated control systems; cockpit controls; power and load management systems; and pressure sensors and fluid debris monitoring products and systems. Eaton serves commercial and military aviation, aerospace, marine and off-road markets worldwide.

Eaton Corporation is a diversified power management company with 2009 sales of $11.9 billion. Eaton is a global technology leader in electrical components and 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 approximately 70,000 employees and sells products to customers in more than 150 countries.

Vivian Xiao, +86(21) 5200-0580
Hilary Spittle, +1(216) 523-5352