Eaton to Build New Engine Valve Plant in China

Part of company's strategy to produce products 'for the region within the region'

Industrial manufacturer Eaton Corp. announced on March 29 that it will expand its vehicle operations in China by investing in a new engine valve production facility in Jining City, Shandong Province.

"The investment in the new facility in Jining represents Eaton's long-standing commitment to produce products for the region within the region. As China's automotive market expands, we will continue to work with our local partners to provide leading technologies for our Chinese customers," said Joseph Palchak, president of Eaton's Vehicle Group.

Eaton will start construction of the 10,000-square meter facility in July 2010. The new facility will assemble engine valves and valve actuation components for automotive customers in the Chinese market. The new Jining plant will be located in the same 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 Asia Pacific.

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

Eaton began operations in China in 1993 through the manufacturing facility in Jining. Its business has grown significantly in the region through acquisitions, joint ventures and wholly-owned subsidiaries over the past two decades. Today, Eaton in China has 27 operations with nearly 10,000 employees.

China became the world's top auto maker and market in 2009. China's sales for the year hit 13.6 million units while production reached 13.8 million units, according to the China Association of Automobile Manufacturers.

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