Eaton Forms Cylinder Head Alliance With Teksid S.p.A.
3 June 1999
Eaton Forms Cylinder Head Alliance With Teksid S.p.A.
CLEVELAND--June 3, 1999--Eaton Corporation and the Teksid Group of Turin, Italy today announced formation of a global strategic alliance between the two companies for the design, manufacture and sale of automotive cylinder head systems.With expected sales in 1999 of $1.7 billion, Teksid, which is a subsidiary of Fiat, S.p.A., is a global leader in the production of iron and aluminum castings for cylinder blocks, cylinder heads, camshafts, manifolds, differential housings and transmission housings. Eaton's Engine Component Operations is a global leader in the design and manufacture of engine valvetrain products and superchargers, and is also involved in the production of cylinder head assemblies.
"The key to success of this alliance will be our new capability to design the cylinder head and components as an effective integrated system," said Paolo Filomeni, President and Chief Executive Officer of Teksid. "That will be the true differentiator for our global customers."
Robert J. McCloskey, Eaton Senior Vice President-Automotive said, "We are very pleased to be linked with a globally-recognized organization such as Teksid, and are very optimistic regarding the potential this agreement represents. Teksid's market leadership in cylinder head casting technology, combined with Eaton's unique position as a designer and supplier of valvetrain systems, will create true value for our customers. This alliance is also consistent with the continuing trend of supply consolidation and the outsourcing of systems modules to qualified tier 1 suppliers to reduce costs and speed the introduction of new technologies," McCloskey said.
Eaton and Teksid are well-positioned globally in traditional North American and European markets, as well as the key emerging regions of Poland, Brazil and China. The companies said cylinder head systems will be produced for truck, automobile and specialty vehicle manufacturers in both mature and developing markets worldwide.
Company officials said that the partnership provides for cooperation in the design, development and manufacture of a broad variety of engine cylinder head assemblies. Within the framework of the alliance, Eaton and Teksid will combine their competencies to develop advanced cylinder head systems and license the designs and related technology to regional operating companies. The operating entities will be strategically positioned worldwide to serve global customers.
In addition to its previously mentioned product offerings, Teksid is engaged in the design and manufacturing of automotive magnesium products through Meridian Technologies Inc., which is a market leader in this area.
Eaton Corporation is a global manufacturer of highly engineered products that serve industrial, vehicle, construction, commercial, aerospace and semiconductor markets. Principal products include hydraulic products and fluid connectors, electrical power distribution and control equipment, truck drivetrain systems, engine components, ion implanters and a wide variety of controls. Headquartered in Cleveland, the company has 65,000 employees and 215 manufacturing sites in 25 countries around the world. Sales for 1998 were $6.6 billion. On April 9, 1999, Eaton acquired Aeroquip-Vickers, Inc., which had sales of $2.1 billion in 1998. The Internet address for Eaton is: http://www.eaton.com/