The facilities will be developed with a Chinese company that it has just acquired for US$64 million by beating two major competitors and some other interested companies, company officials said yesterday.

Changzhou Senyuan Switch Co of Jiangsu Province, a wholly owned subsidiary of Senyuan International Holdings that Eaton bought, is a well-established maker of vacuum circuit breakers and other electrical switchgear components in China. The company generated 374 million yuan in sales last year.

"It is a critical step for our growth in China," said Louis Pinkham, general manager of Eaton Electrical Group North Asia, adding the move will help the firm become a leading player in the Chinese market by leveraging on Senyuan's already established sales channels and brand.

Eaton will invest more in the facility, whose financial details were not released, and introduce its technology and the Westinghouse brand that it bought in 1994, when it acquired the power distribution and control business unit like circuits and switches from Westinghouse Electric Corporation.

Pinkham said the firm is also looking for other acquisition opportunities in China to help Eaton meet its goal of US$2.5 billion annual sales by 2010 in the north Asia region. Eaton's electrical group's total income last year was US$3.8 billion, accounting for 34 percent of its 2005 revenue.

China's booming demand for electricity is boosting construction of power supply facilities, and has attracted major foreign players into establishing new plants or acquiring Chinese companies.

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