ITT Corporation

ITT Industries Announces Approval of Its China Holding Company

    11/20/1996

    ITT Industries Announces Approval of Its China Holding Company

           Company and Partners Prepare for Additional Investment in China
    
        BEIJING, China, Nov. 20 /PRNewswire/ -- ITT Industries (NYSE: IIN), a U.S.
    $8.4 billion diversified global manufacturing company, today announced
    approval by the Chinese government of its China holding company, to be known
    as ITT Industries (China) Investment Co., Ltd.  With headquarters in Beijing,
    ITT Industries (China) Investment Co., Ltd. will oversee company business
    operations already established in China.  These include two automotive joint
    ventures by ITT Automotive, a pump manufacturing, joint venture by ITT Fluid
    Technology and an electronic component joint venture company under the
    auspices of ITT Cannon.  Three additional automotive business ventures are
    under various stages of negotiations.
        The holding company will provide centralized management for the businesses
    of ITT Industries in China in the area of sales and marketing, customer
    engineering support, purchasing, investing and other financial transactions,
    and recruiting and training of personnel.
        "The establishment of ITT Industries (China) Investment Co., Ltd. is a
    significant step in fulfilling our strategic plan to invest and grow in China
    and the Asia Pacific region," said Travis Engen, chairman, president and chief
    executive of ITT Industries.
        The holding company approval also paves the way for ongoing company plans
    for additional investment with its partners in China's automotive, electronics
    and fluid technology markets.
        "This is a step forward for us and for China's automotive industry,
    positioning us to provide world-class service to Chinese and international
    automotive clients here in China and throughout the Asia Pacific region as
    well," said Prof. Dr. Klaus G. Lederer, president of ITT Automotive Brake &
    Chassis Systems Worldwide.  "The holding company will enable us to manage our
    operations with one style, one set of principles and one commitment: to
    design, produce and deliver world-class systems for world-class vehicles in an
    ever changing, dynamic automotive market," he said.
        In the past decade, ITT Industries, through its subsidiary ITT Automotive,
    has made a strategic commitment to invest in China's automotive market.
    Together with its partners in China, ITT Automotive has already invested
    approximately US $100 million in two joint ventures for brake and electrical
    systems, and other business development activities.
        In partnership with Shanghai Automotive Company, Ltd., ITT Automotive
    established Shanghai Automotive Brake Systems, Co., Ltd. (SABS) in 1994.  The
    SABS joint venture commenced operations in 1995 and supplies brake calipers
    and wheel cylinders to the domestic market.  Production of ITT Automotive's
    latest generation of ABS, the MK20, will begin in 1997 for domestic and
    international customers.
        In 1996, ITT Automotive and SIIC Transportation Electric Co. Ltd. (STEC)
    established ITT Shanghai Automotive Electric Systems, Co., Ltd.  The joint
    venture manufactures wiper systems and fractional horsepower motors for
    anti-lock braking systems (ABS), heating, ventilating and air conditioning
    equipment, and supplies electrical systems and other components to Chinese
    automotive manufacturers and other international customers.
        "The market demand in China, driven both by local and international
    manufacturers, continues to grow," said Ronald J. Gilchrist, president of ITT
    Automotive Asia Pacific, Inc.  "As our clients' businesses expand, so must
    ours, and China is currently providing us with a solid base for that growth,"
    he said.
        China's auto industry last year produced 330,000 passenger cars and at
    more than 120 plants across the country.  ITT Automotive currently has its
    products in more than 50 percent of these vehicles.  According to government
    projections, the auto market is expected to grow in excess of 1 million cars
    annually by the year 2000.
        "Meeting the needs of the growing automobile market in China goes
    hand-in-hand with developing the market itself," said Roy Sheldon, president
    of ITT Automotive China and general manager of the holding company.  ITT
    Industries and ITT Automotive have been growing their business in China and
    the rest of Asia for more than a decade through technology transfer and
    manufacturing agreements.
        ITT Fluid Technology, through its subsidiary ITT Flygt, established a
    manufacturing facility in 1995 in Shenyang to serve China's rapidly growing
    demand for modern and environmentally sound wastewater handling, drainage and
    irrigation systems.  In 1996, a sales and marketing office was established in
    Shanghai to support product sales from ITT Flygt and the Shenyang factory.
    ITT Fluid Technology designs and manufactures submersible pumps, mixers and
    systems that serve a broad range of applications in China and around the
    world, from controlling urban flooding and treating wastewater, to irrigating
    crops and generating power.
        In 1994, ITT Cannon formed ITT Cannon (Zhenjiang) Electronics Co., Ltd., a
    joint venture to produce connectors for Alcatel and Shanghai Bell as well as
    VCR connectors for the Chinese Government VCR program.
        ITT Industries is a leading worldwide diversified manufacturing company,
    with 1995 sales of $8.4 billion from its three primary business segments:
    automotive, defense & electronics, and fluid technology.  ITT Automotive is
    one of the world's largest independent suppliers of systems and components to
    automotive manufacturers.  ITT Defense & Electronics is a world leader in the
    design, manufacture and support of high technology electronic systems and
    components for defense and commercial markets.  ITT Fluid Technology is one of
    the world's leading manufacturers of products, systems and services for the
    movement, measurements and control of fluids.
        More detailed information on ITT Industries is available on-line at
    http://www.ittind.com.
    
    SOURCE  ITT Industries
    
    

About ITT

ITT is a diversified leading manufacturer of highly engineered critical components and customized technology solutions for the transportation, industrial, and oil and gas markets. Building on its heritage of innovation, ITT partners with its customers to deliver enduring solutions to the key industries that underpin our modern way of life. ITT is headquartered in White Plains, N.Y., with employees in more than 35 countries and sales in a total of approximately 125 countries. The company generated 2016 revenues of $2.4 billion.

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