Eaton's scheme for power
(Shanghai Daily)
Updated: 2006-10-18 15:52 Eaton Corp, a US-based
industrial equipment manufacturer, will build medium voltage power supply
facilities in eastern China to compete with global rivals like ABB and Siemens
in the country.
The facilities will be developed with a Chinese company that it has just
acquired for US$64 million by beating two major competitors and some other
interested companies, company officials said yesterday.
Changzhou Senyuan Switch Co of Jiangsu Province, a wholly owned subsidiary of
Senyuan International Holdings that Eaton bought, is a well-established maker of
vacuum circuit breakers and other electrical switchgear components in China. The
company generated 374 million yuan in sales last year.
"It is a critical step for our growth in China," said Louis Pinkham, general
manager of Eaton Electrical Group North Asia, adding the move will help the firm
become a leading player in the Chinese market by leveraging on Senyuan's already
established sales channels and brand.
Eaton will invest more in the facility, whose financial details were not
released, and introduce its technology and the Westinghouse brand that it bought
in 1994, when it acquired the power distribution and control business unit like
circuits and switches from Westinghouse Electric Corporation.
Pinkham said the firm is also looking for other acquisition opportunities in
China to help Eaton meet its goal of US$2.5 billion annual sales by 2010 in the
north Asia region. Eaton's electrical group's total income last year was US$3.8
billion, accounting for 34 percent of its 2005 revenue.
China's booming demand for electricity is boosting construction of power
supply facilities, and has attracted major foreign players into establishing new
plants or acquiring Chinese companies. (For more biz stories, please visit Industry Updates)
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