Eaton to produce heavy-duty truck transmissions in China

Eaton Corporation today announced plans to form a joint venture in China with Shaanxi Fast Gear Works Co., Ltd. (SFGW) and Xiang Torch Investment Co., Ltd., to produce heavy-duty truck transmissions for the burgeoning Chinese market. The joint venture, which will be known as Eaton Fast Gear Company, is expected to be formally established in the next several weeks after obtaining regulatory approval. Eaton will have 55% ownership of the venture. The joint venture will be based in Xi'an, the capital of Shaanxi province in central China. Production is expected to begin in the fourth quarter of 2004. SFGW is a leading manufacturer and supplier of heavy-duty transmissions in China and Xiang Torch Investment is the majority owner of SFGW. Eaton has enjoyed a strong working relationship with SFGW since 1985, supplying the technology for heavy-duty truck transmissions under a licensing agreement.