Eaton Purchases Remaining Share of Chinese Joint Venture Company
Fri Jun 7, 2002 - CLEVELAND… Diversified industrial manufacturer Eaton Corporation (NYSE:ETN) today said it has purchased the remaining interest in its Jining Eaton Hydraulics Company, Ltd. (JEHYCO) hydraulic systems joint venture company in Jining, China, for an undisclosed amount.
The joint venture, formed in 1994 with Jining Hydraulics Components Works (JHCW), manufactures hydraulic pumps and motors for mobile and industrial markets. Eaton had previously owned 60 percent of the venture.
Eaton Chairman Alexander M. Cutler, said, "As Eaton’s fourth operating wholly-owned entity in China, this acquisition gives us the flexibility to further capitalize on the growth and success JEHYCO has enjoyed as a joint venture. Our business partnership with JHCW afforded us valuable insight into the local hydraulics marketplace that we can capitalize on in managing the business as we go forward. This acquisition gives us an established business, proven manufacturing capability and a quality line of products upon which to expand our presence in both domestic and export markets."
Cutler said the JEHYCO purchase is another positive step forward in furthering Eaton’s strategy to become a hydraulic systems leader in the Asia/Pacific region. In October, 2000, Eaton announced it was acquiring the remaining portion of a hydraulic equipment joint venture in Japan, which is now Eaton Fluid Power Limited, and the company also has fluid power manufacturing and assembly operations in India, Singapore, Australia and New Zealand, as well as sales and warehousing operations throughout the region.
JEHYCO has approximately 200 employees, all in the city of Jining, and manufactures steering pumps and fluid power motors for major agricultural, construction and manufacturing companies in China.
With sales of $2.5 billion in 2001, Eaton Corporation’s Fluid Power business is a global leader in the design and development of hydraulic systems for aerospace, industrial, mobile and automotive markets.
Eaton Corporation is a global $7.3 billion diversified industrial manufacturer that is a leader in fluid power systems; electrical power quality, distribution and control; automotive engine air management and fuel economy; and intelligent truck systems for fuel economy and safety. Eaton has 48,000 employees and sells products in more than 50 countries.
Source: Eaton Corporation plc