News that the world financial crisis may
dampen China's economic growth hasn't slowed Eaton Corp.'s aggressive investing. In November the diversified industrial manufacturer purchased a building in Shanghai that will house its
new Asia-Pacific headquarters. The investment will allow Eaton to integrate and better coordinate its local power management operations, which expanded with the 2008 acquisitions of Germany-based
Moeller Group and Taiwan-based
Phoenixtec Power Co. Ltd., which both have a substantial China presence.
Eaton chief executive Alexander M. Cutler had this to say in announcing the investment:
"Despite the difficulties in the global financial markets, we believe that China's expanding infrastructure is a priority to its economic growth. ... For an infrastructure-focused company such as Eaton, China remains a country full of exciting growth opportunities."
The Cleveland-based manufacturer is a highly acquisitive company. It's spent $4.25 billion on more than a dozen acquisitions over 18 months. And as Eaton's senior vice president of corporate development and treasury Ken Semelsberger told us for our special report on
corporate development careers in September, it is always in deal mode.
"Our philosophy is if you're going to have a strong acquisition program, you've always got to be in the market. You've always got to be looking."
This year Eaton has opened six new locations in China. It has been operating in the country since 1993, when it formed a joint venture to manufacture auto parts. It has since built a 27-unit operation through additional JVs, acquisitions and wholly owned subsidiaries.
- Suzanne Stevens
Juergen Lasowski
And the winners are...
