Eaton Corp., Shaanxi Fast Gear Co. Ltd. and Xiang Torch Investment Co. Ltd. have signed a joint venture agreement to produce heavy-duty truck transmissions in Xi'an, China, for the growing Chinese market - SFGW - international report

Diesel Progress North American Edition, Jan, 2004

Eaton Corp., Shaanxi Fast Gear Co. Ltd. (SFGW) and Xiang Torch Investment Co. Ltd. have signed 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 percent ownership of the joint venture, SFGW will own 23 percent and Torch Investment will have 22 percent ownership.

Terms were not disclosed. 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.