A new Sino-foreign manufacturing joint venture aims to capitalize on the growth in the commercial vehicle clutch market.
Power management company Eaton and Shaanxi Fast Gear Co. Ltd. signed a joint venture agreement to support the growing commercial vehicle clutch market in China. The formation of the joint venture is subject to regulatory approvals and customary closing conditions.
The planned joint venture will focus on developing, manufacturing, assembling, testing, selling and servicing clutches and associated clutch components for the commercial vehicle market in China.
Financial terms were not disclosed, but ownership stakes were announced. SFGW, headquartered in Xi'an, will own a 51% interest in the new joint venture; Eaton will own a 49% interest.
Eaton provides energy-efficient solutions that help its customers effectively manage electrical, hydraulic and mechanical power more efficiently, safely and sustainably. Eaton has approximately 103,000 employees and sells products to customers in more than 175 countries.
SFGW is one of the largest specialized production enterprises and exporters based in China. The company mainly focuses on commercial vehicle transmissions, auto gears, forgings and castings. It has over ten wholly-owned and share stock companies, a solely-owned factory in Thailand and distribution office in the United States.