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
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,"
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
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
SOURCE ITT Industries