The following news release was distributed in China earlier today.
SHANGHAI … Diversified industrial manufacturer Eaton Corporation (NYSE:ETN) today announced a new five-year sales goal of $2 billion in revenue in China by the end of 2015, doubling its 2010 revenue of $1 billion in the country.
“China has become a key driver of Eaton’s global growth,” Alexander M. Cutler, Eaton chairman and chief executive officer, said today in meetings with Chinese media. “As a power management company, we are excited to participate in leading infrastructure projects in this dynamic market, and we expect each of Eaton’s businesses – electrical, hydraulics, vehicle and aerospace – to realize significant opportunities for further growth.”
Cutler outlined the company’s blueprint for China and expressed confidence that China’s economic growth and emphasis on energy-efficient infrastructure will continue to provide business opportunities for Eaton.
2011 marks the beginning of China’s 12th Five-year Plan. Among the six strategic pillars are energy saving and environmental protection as well as industry upgrade and innovation, all of which Eaton’s businesses in China can support.
“Helping our customers manage the power they use safely, efficiently and responsibly is a clear focus for Eaton in China,” added Cutler. “We are well-positioned to support China’s strategic plan by providing innovative and sustainable energy management solutions for our customers. We see opportunities to expand our investment in the region, which will help foster the development of China’s economy.”
Cutler noted several of Eaton’s key achievements in China in 2011, Eaton’s 100th anniversary year:
- Eaton and Shanghai Aircraft Manufacturing Co., Ltd. (SAMC), a subsidiary of the Commercial Aircraft Corporation of China (COMAC), officially launched their conveyance joint venture on June 28. The new joint venture, signed in July 2010, was the first for the COMAC enterprise with a foreign company. It was also the first, among the joint ventures being formed to support the C919 program, to be granted a business license in March 2011.
- Eaton’s Vehicle Group has invested in a new engine valve production facility in Jining, Shandong Province. The new facility will start production in September 2011 and will provide engine valves for automotive customers in the Chinese market. In this new operation, Eaton will build on its experience as the number one manufacturer of engine valves in China.
- Eaton has won orders from China Unicom, one of the largest telecom providers in China, for hundreds of Eaton’s 9395 Uninterruptible Power Supply (UPS) products. The equipment will be used in China Unicom’s Beijing data center, one of the largest data centers in northern China.
- Eaton continues to partner in China’s infrastructure development by winning contracts from XCMG Group, China's largest manufacturer of construction machinery. Eaton will equip its hydraulics pumps and motors for XCMG’s next-generation compactor models. Meanwhile, Eaton supplied its advanced progressive torque limited slip differential to Xiagong’s five-ton wheel loader, making it the first manufacturer worldwide to incorporate the efficient Eaton technology in a production wheel loader.
- Eaton has won the contract to supply Medium Voltage Assembly equipment to the Beijing Subway Line 6 project, which is currently the longest subway line in Beijing. In addition, Eaton has provided safe, reliable and efficient power distribution solutions to subway lines in Guangzhou, Hangzhou and Ningbo.
As Eaton’s businesses continue to grow, new investments are being made to support the increasing demand generated in the Chinese market. Today, Cutler hosted an opening ceremony of a new office building at the company’s Asia Pacific headquarters in Shanghai. The facility adds approximately 6,000 square meters of floor space to complement the existing headquarters building, which opened in 2009. The new office can seat more than 200 employees from Eaton’s various businesses and will maintain the same high environmental standards as the first building, one of the largest LEED-certified (Leadership in Energy and Environment Design) commercial buildings in China.
“We are pleased to continue Eaton’s expansion in the region during this, our company’s 100th anniversary year,” Cutler noted. ”It marks another positive step toward meeting our significant growth goals in the region. Growth will enable Eaton to further expand our employment, invest in research and development and contribute to local communities.”
Eaton began operations in China in 1993 through a joint venture agreement in Jining. Its presence has grown significantly through acquisitions, joint ventures and wholly owned subsidiaries. Currently in China, Eaton employs a workforce of 10,000 and has four research and development centers and 18 major manufacturing sites, the majority of which produce products for the domestic market.
Eaton Corporation is a diversified power management company with 2010 sales of $13.7 billion. Celebrating its 100th anniversary in 2011, 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 73,000 employees and sells products to customers in more than 150 countries.
Hilary Spittle, +1 (216) 523-5352