Eaton Corp. has 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,” says Alexander Cutler, chairman and chief executive officer. “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, with 2011 marking 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,” says 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.”
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 and will provide engine valves for automotive customers in the Chinese market. The company also has won 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 progressive torque limited slip differential to Xiagong’s five-ton wheel loader.
As Eaton’s businesses continue to grow, new investments are being made to support the increasing demand generated in the Chinese market, including a new office building at the company’s Asia Pacific headquarters in Shanghai. The facility adds about 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. “Growth will enable Eaton to further expand our employment, invest in research and development and contribute to local communities,” Cutler says.
Eaton began operations in China in 1993 through a joint venture agreement in Jining. Its presence has grown through acquisitions, joint ventures and wholly owned subsidiaries. Currently in China, Eaton employs a work force of 10,000 and has four research and development centers and 18 manufacturing sites, the majority of which produce products for the domestic market.