Eaton Expanding in China – Analyst Blog

Eaton Corporation (ETN) announced that it will expand its vehicle operations in China by investing in a new engine valve production facility in Jining City, Shandong Province.

 

The facility will be located in the campus of Eaton Hydraulics System (Jining) Co. Ltd., which produces steering pumps, hydraulic motors and filtration components. It is Eaton’s largest manufacturing base for hydraulics products in the Asia-Pacific. Eaton’s investment in the Jining facility represents its long-standing commitment to produce products for the region within the region.

 

Eaton currently manufactures automotive components in its facility in Shanghai − Shanghai Eaton Engine Components Company Ltd. (“SEECO”) – for Shanghai Volkswagen, Shanghai General Motors, FAW-Volkswagen, Shenyang Aerospace Mitsubishi, Guangzhou Dongfeng Honda, Changan Suzuki, Changan Ford and Jiangling Motors.

 

China became the world’s top automaker and market in 2009. Sales for the year hit 13.6 million units in the country while production reached 13.8 million units, according to the China Association of Automobile Manufacturers.

 

As China’s automotive market expands, the company plans to continue to work with local partners to provide leading technologies for its Chinese customers. Eaton works closely with both domestic and global automotive manufacturers to develop technology-based solutions for their needs in the fast-growing Chinese market, and is excited about the growth possibilities this new facility provides.

 

Eaton will start the construction of the 10,000-square meter Jining facility in July 2010. This facility will assemble engine valves and valve actuation components for automotive customers in the Chinese market.

 

Cleveland, Ohio-based Eaton Corporation is a diversified power management company and 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 gradually transformed itself from an automotive and truck component manufacturer into a diversified industrial enterprise with leading positions in its core electrical, hydraulic and aerospace market segments. Going forward, we believe the company’s organic growth will be driven by strength in its end-markets.