Document 91VKn3eRJDJkvQ1BrOepy1Qde

Ne know that we have agile, more responsive The major programs undertaken by country in the past year were: Brazil 1. Began construction of a new manufacturing plant for automotive transmissions for GM's Corsa. 2. Announced plans to begin manufacturing viscous fan drives in 1998. 3. Formed a joint venture with Amtec to machine and assemble cylinder heads for automotive engines. China 1. Formed a holding company headquartered in Shanghai, called Eaton (China) Investments Co., Ltd., with a commitment to inr"~J capital of $30 million. 2. Gained Chinese government at., ^val to construct a new 100.000-square-foot facility in Shang hai for a wholly owned subsidiary to manufacture heavy-duty truck transmissions for Chinese and other Asia/Pacific markets. 3. Obtained a license to manufacture hydraulic components in Shanghai, beginning in 1998. 4. Wrapped up a three-way joint ven ture, with Eaton having the controlling interest, to manufacture engine valves in Shanghai. Korea 1. Completed a new 45,000-square-foot semiconductor equipment facility to manufacture ion implanters for the South Korean market. 2. Began building limited slip differentials for auto makers Hyundai and Kia in a new plant near Seoul. 3. Formed a joint venture with JC Corporation to manufacture automotive con trols with Eaton owning 51 percent of the joint venture. 10