Eaton's JV off and running in China

Eaton Corp, Shaanxi Fast Gear Co., Ltd. SFGWW and Xiang Torch Investment Co., Ltd. conducted a ceremony this week to celebrate the signing of a joint venture agreement to produce heavy-duty truck transmissions in Xi'an, China, for the growing Chinese market. The joint venture will be called Eaton Fast Gear (Xi'an) Co., Ltd. Eaton will have 55% ownership of the joint venture, SFGW will own 23% and Torch Investment will have 22% ownership. Terms were not disclosed. The signing ceremony took place in Xi'an with local and regional government and business development officials in attendance.Xi'an-based SFGW is a leading manufacturer of heavy-duty truck transmissions in China. Zhuzhou-based Torch Investment is the majority owner of SFGW. Eaton has worked with SFGW since 1985, supplying the technology for heavy-duty truck transmissions under a licensing agreement.Eaton is providing its next-generation heavy-duty truck transmission technology for the new joint venture. The joint venture will build a facility in Xi'an, the capital of Shaanxi province in western China, to assemble, test and sell heavy-duty transmissions. Plans are for the facility to open in the fourth quarter of 2004. "This joint venture is another indication of the steady growth and development of Eaton's businesses in China," said James E. Sweetnam, senior vice president and group executive for Eaton's truck business. He said the joint venture "strongly positions Eaton for long-term growth in China's heavy-duty truck market." He noted that this "combines China's leading manufacturer of heavy-duty truck transmissions with one of the world's premier providers of heavy duty truck transmissions."