BEIJING … Diversified industrial manufacturer Eaton Corporation today announced that it expects to meet a sales goal of $1 billion in China by the end of 2010. Alexander M. Cutler, chairman and chief executive officer, outlined the company’s blueprint for growth in China and detailed a series of major initiatives to utilize Eaton’s global expertise and capabilities to support China’s ongoing infrastructure development.
“Eaton is well on the track to meet our previously announced sales goal of $1 billion in China in 2010, despite the global economic recession that began in 2008," said Cutler in remarks to Chinese media. “We anticipate that China’s economy will continue to grow faster than the rest of the world, and Eaton will continue its business expansion through both organic growth and acquisitions in this key developing market. “
Cutler noted that Eaton made the following achievements in China in 2010:
- Eaton and Shanghai Aircraft Manufacturing Co., Ltd. (SAMC), a subsidiary of Commercial Aircraft Corporation of China (COMAC), have signed a joint venture agreement to support the COMAC C919 single-aisle commercial aircraft program. The planned joint venture, the first for the COMAC enterprise with a foreign company, 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.
- Eaton, Shanghai Aviation Electric Co., Ltd. (SAE) and COMAC have signed a letter of intent for Eaton to supply the cockpit panel assemblies and dimming control system for the COMAC C919 aircraft program. Total value of the program is estimated to exceed $425 million, based on an anticipated volume of 2,500 aircraft.
- Eaton’s Vehicle Group launched a new engine valve production facility in Jining, Shandong Province. The new facility will assemble engine valves for automotive customers in the Chinese market. It has also added a new R&D center in Wuxi to better serve the demands of local customers.
- Eaton has won the contract to supply more than RMB41 million in electrical products – including RMB20 million in mid-voltage switchgear and RMB21 million in assemblies -- to the new TFT-LCD plant of BOE Technology Group Co., Ltd, a leading supplier of display products and solutions in China. This contract is one of several recent agreements that Eaton’s Electrical business has reached with Chinese customers.
- Eaton’s Hydraulics Group continues to partner in China’s infrastructure development by winning contracts of over RMB 70M in 2010 for concrete pumps and mixers. In addition, Eaton was awarded a RMB 18M contract to supply high pressure Eaton-Aeroquip hoses for China’s High speed railway network.
“The further expansion of Eaton’s production capability in China is another positive step forward in meeting our significant growth goals in the region,” Cutler said. "We see our participation in China first and foremost as an opportunity to support our customers in the fast-growing Chinese domestic economy. We are committed to increasing our research and development initiatives locally, as well as investing in our people and our communities in China.”
In related news this week, Eaton announced its new Asia Pacific regional headquarters building in Shanghai has earned Gold Certification by the U. S. Green Building Council’s internationally recognized LEED program.
Eaton began operations in China in 1993 through a joint venture agreement to manufacture steering control units and hydraulic motors in Jining, Shandong Province. Its presence has grown significantly in China through acquisitions, joint ventures and wholly owned subsidiaries. Currently, Eaton employs a workforce of 10,000 and has 27 operations and 4 R&D centers in China.
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.
Hilary Spittle, +1(216) 523-5352