Document 4v5KkewJEJwgKLbxz8Ve5OvJx

Trade Agreement Stimulates Growth in Mexico Eaton has two operations manufacturing Cutler-Hammer products in Brazil, with sales exceeding $50 million. Cutler-Hammer S3o Paulo is the leading Brazilian supplier of human interface devices and manufactures complementary Cutler-Hammer 38 kilovolt switchgear (inset and right) controls electri cal power in institutions, factories and utilities. Similar equipment is being installed at the new sports stadium in Shanghai, China. The Digitrip OPTIM programmable electronic trip unit (top right) uses micro industrial control components. This operation has be come the worldwide source for the company's 22.5 mm pushbuttons which are supplied to European and North American markets in addition to Latin America. Cutler-Hammer Rio de Janeiro is a leading manufac processors to monitor and adjust settings on installed circuit break ers, increasing productivity and reducing downtime and costs. The IQ Analyzer (top center) monitors a range of electrical parameters, such turer of miniature and power circuit breakers as well as distribution assemblies. Its products are sold to Brazil's residential, commercial and industrial markets. This business finished 1996 with record bookings of distrib ution assemblies sold to targeted industrial market segments. Forecasted market growth for electrical equip ment in Brazil is expected to average at least 10 percent over the next three to five years. Mexico--NAFTA sparks growth Since the devaluation of the peso in 1994, Mexico has been recovering from deep recession. The market for many products, including truck components, remains depressed. The adoption of the North American Free Trade Agreement (NAFTA) is stimulating economic growth in both the U.S. and Mex ico as tariffs on goods and services are gradually reduced. GOP growth, estimated to have been about 4 percent in 1996, is expected to strengthen in 1997. Eaton's truck components facility in Toluca manufactures brakes and medium-duty drive axles and steering axles for both medium and heavy trucks and buses. Mexican truck manufacturers are supplied with components from Eaton's Mexican and U.S. plants. The Mexican truck market has begun a slow recovery from recession. Significant improvement is expected in 1997. In anticipation, Eaton has reorganized its truck operations in North and South America to rationalize production and better serve Mexican, Canadian and U.S. markets. as current, voltage, power and energy demand and power quality, including sags and harmonics, which can be harm ful to power distribution systems. It is perfectly suited to In 1996, Eaton completed the consolidation of the former Westinghouse facility at Cuer locations such as computer facilities, commercial sites and industrial plants, where power quality is crucial. navaca into the Cutler-Hammer facility in Mexico City. The combined facility generated a sales increase of 34 percent in 1996 for a broad range of electrical distribution and con trol products. 16 17