Eaton acquires 50% stake in Jiangsu Huineng Electric Co., Ltd.’s circuit breaker business

Rhea-AI Summary

Eaton (NYSE:ETN) has finalized the acquisition of a 50% stake in Jiangsu Huineng Electric Co., Ltd., a Chinese manufacturer of low-voltage circuit breakers. This acquisition is a significant step in Eaton’s growth strategy, allowing them to access high-growth markets such as renewable energy and grid modernization. Huineng, established in 2007, is known for its products used broadly in wind, solar, and power plants. This partnership is expected to leverage Eaton's global distribution to enhance its market presence in Asia-Pacific and beyond.

Positive

• Acquisition of a 50% stake in Huineng enhances Eaton's position in the growing low-voltage circuit breaker market.
• Strategic access to high-growth market segments, including renewable energy and grid modernization.
• Partnership expected to leverage Eaton's global distribution channels.

Negative

• None.

DUBLIN--(BUSINESS WIRE)-- Power management company Eaton (NYSE:ETN) today announced it has completed the acquisition of a 50% stake in the circuit breaker business of Jiangsu Huineng Electric Co., Ltd. (Huineng), which manufactures and markets low-voltage circuit breakers in China.

“This strategic relationship marks an important milestone in Eaton’s growth strategy,” said Howard Liu, president, Asia-Pacific Region, Electrical Sector, Eaton. “The combination of application-tailored products with our global distribution channels positions us to capitalize on opportunities in high-growth market segments such as renewable energy, grid modernization, commercial buildings and industrial.”

Jiangsu Huineng Electric Co., Ltd. is a Chinese high-tech electrical equipment manufacturer. Founded in 2007 and headquartered in Zhenjiang, China, its products are widely used and recognized across key markets including wind and solar and power plants.

Eaton is an intelligent power management company dedicated to improving the quality of life and protecting the environment for people everywhere. We are guided by our commitment to do business right, to operate sustainably and to help our customers manage power ─ today and well into the future. By capitalizing on the global growth trends of electrification and digitalization, we’re accelerating the planet’s transition to renewable energy, helping to solve the world’s most urgent power management challenges, and doing what’s best for our stakeholders and all of society.

Founded in 1911, Eaton has been listed on the NYSE for nearly a century. We reported revenues of $19.6 billion in 2021 and serve customers in more than 170 countries. For more information, visit www.eaton.com. Follow us on Twitter and LinkedIn.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220705005218/en/

Jennifer Tolhurst, +1 (440) 523-4006

jennifertolhurst@eaton.com

Source: Eaton

FAQ

What is the significance of Eaton's acquisition of Huineng?

Eaton's acquisition of a 50% stake in Huineng is a strategic move to penetrate high-growth markets, particularly in renewable energy and grid modernization.

How will Eaton benefit from the partnership with Huineng?

Eaton will capitalize on Huineng's established market share in China and utilize its global distribution channels to enhance its product reach.

When was the acquisition of Huineng completed?

Eaton announced the completion of the acquisition on a recent date, marking a significant milestone in its growth strategy.

What products does Jiangsu Huineng Electric manufacture?

Jiangsu Huineng Electric manufactures low-voltage circuit breakers, utilized primarily in wind, solar, and power plant applications.

What are the expected impacts of this acquisition on Eaton's growth?

The acquisition is expected to drive Eaton's growth by expanding its market presence in Asia and providing synergies in product offerings.