Dec 1, 2003 12:00 PM

Eaton Corp plans to form a joint venture in China with Shaanxi Fast Gear Works Co Ltd (SFGW) and Xiang Torch Investment Co Ltd to produce heavy-duty truck transmissions for the growing Chinese market.

Plans are for the joint venture, which will be known as Eaton Fast Gear Co, to be formally established in the next several weeks after obtaining regulatory approval. Eaton will have 55% ownership of the venture. The joint venture will be based in Xi'an, the capital of Shaanxi province in central China. Production is expected to begin in fourth-quarter 2004.

SFGW manufactures and supplies heavy-duty transmissions in China, and Xiang Torch Investment is the majority owner of SFGW. Eaton has enjoyed a strong working relationship with SFGW since 1985, supplying the technology for heavy-duty truck transmissions under a licensing agreement.