Eaton Corp powers itself into Europe, Asian markets
Updated: 2008-04-10 07:19
By Chen Hong(HK Edition)
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SHENZHEN: The new acquisitions of US-based diversified industrial manufacturer Eaton Corp in Europe and Asia will offset the negative market situation in North America to bring a higher growth, the company executives said yesterday in this southern city.
Eaton, which operates out of Cleveland, announced it has completed the purchase of Moeller Group, a German electrical components manufacturer, and Phoenixtec Power Co, a Taiwan uninterruptible power supply (UPS) systems producer, for a combined $2.8 billion.
The two deals were completed this month and in February, respectively.
The two firms booked combined estimated sales of $2 billion in 2007.
"We have seen a slower market in North American in 2007. But we still achieved an 8 percent growth in our electrical business, and we expected an increase of 20 percent over 2007 this year thanks to our increasing exposure to Asia and Europe," said James W McGill, vice president of Eaton operations in Asia and Pacific areas.
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US diversified industrial manufacturer Eaton Corp's acquisition of the Taiwan-funded Phoenixtec Power Co will help Eaton expand its power business in China, as well as other Asian markets. AFP |
He said the company hopes that its overall revenue will be more than $16 billion this year, and that its Asian business will double.
It earlier forecasted that with the acquisition deals closed, its electrical business will have annual returns exceeding $7.5 billion, with most of that coming from international business, which has already accounted for 55 to 60 percent.
Taiwan-listed Phoenixtec, which manufactures and supplies single- and three-phase UPS systems to the global markets, has taken the No 1 market shares on the mainland and in Taiwan province. It has six factories in Shenzhen and Taiwan.
Phoenixtec CEO S C Cheng said Eaton recognizes his company's presence in Taiwan and on the mainland. "The acquisition has enhanced Eaton's overall competition to be the world's second-largest supplier of UPS systems," Cheng said.
He said the acquisition will enrich Phoenixtec's product mixes, optimize the costs and further increase its shares in mainland markets.
McGill said: "Phoenixtec will provide us with an important manufacturing, research and development base for quality equipment and systems in China".
Eaton's sales totaled $13 billion last year from businesses related to electrical systems and components for power quality, distribution and control, fluid power systems and mobile and aircraft equipment.
(HK Edition 04/10/2008 page2)