ITT Corporation

ITT Industries Expands Investment in China with Manufacturing Plant Renovations and Agreements with Chinese Universities

    11/18/1997

        SHANGHAI, Nov. 18 /PRNewswire/ -- Expanding its investment in China, ITT
    Industries' (NYSE: IIN) automotive division, ITT Automotive (ITT Automotive),
    and its joint venture partner Shanghai SIIC Transportation Electric Co. (STEC)
    today unveiled the first phase of its newly renovated automotive components
    manufacturing plant near Shanghai.  Additionally, ITT Industries CEO Travis
    Engen announced two Memoranda of Understanding with Tsinghua University in
    Beijing and Shanghai Jiao Tong University that emphasize continued engineering
    and management education and industry development in China.
        "ITT Industries is very enthusiastic about prospects for growth in China,"
    said Engen.  "We have invested well over US$100 million along with our joint
    venture partners in the last five years and we expect to invest another
    US$50 million in the next three to five years.  Additionally, ITT Industries
    had the pleasure of signing formal agreements with Tsinghua University in
    Beijing and Shanghai Jiao Tong University demonstrating our commitment to
    helping educate young engineers and managers.  It is our belief that
    facilitating this engineering and management talent will foster continued
    economic growth and prosperity in China in the years ahead which will benefit
    ITT Industries and its venture partners."
        The ITT Automotive and STEC joint venture, ITT Shanghai Automotive
    Electric Systems Co. (ITT SAES), manufactures wiper systems, heating,
    ventilation and air conditioning assemblies, fractional horsepower motors for
    four-wheel anti-lock braking systems (ABS), window lifts and other automotive
    and industrial applications.
        The improvements to the Shanghai plant, located in the Minhang Economic
    Zone, include new assembly line equipment for wiper motors, wiper linkages,
    four-wheel anti-lock brake system (ABS) motors, window lift motors, wiper arms
    and blades; a new armature line for window lift motors; a reconstruction of
    the fabrication and machining areas as well as the warehouse, in-coming and
    maintenance areas; and lastly a new inspection area with the latest associated
    test equipment.  ITT SAES is already supplying wiper systems and other
    components to major OEMs, such as Shanghai VW, and is also preparing to meet
    requirements of the newest OEM, Shanghai General Motors.  It expects to be
    ISO9000 certified by the end of this year.
        As part of the agreement with Tsinghua and Shanghai Jiao Tong
    Universities, ITT Industries and the universities will jointly develop and
    sponsor annual seminars for university and business communities.  The first
    presentation, entitled "The Essence of Deming," is scheduled for early
    December and will focus on total quality management and will be given by a
    leading expert in the field.  Also as part of the agreement, internships and
    joint research and development opportunities at ITT Industries and scholarship
    programs will be established at the universities.
        Additionally, ITT Automotive's presence in China is further highlighted by
    recent technical innovations at the Shanghai Automotive Brake Systems Company
    (SABS), a joint venture with Shanghai Automotive Industry Corporation (SAIC).
    The SABS plant, also located near Shanghai in the Jiading Special Economic
    Zone, recently installed a new MK20 four-wheel anti-lock brake system (ABS)
    assembly line with full scale production to begin in the fourth quarter of
    1997 for volume customers.  SABS is proud to be a prime supplier of brake
    components to SVW and FAW/VW and will also supply calipers for the Shanghai
    General Motors project.  SABS expects to be ISO9000 certified by the end of
    this year.
        New projects under negotiations for ITT Automotive include ventures for
    automotive switches, brake actuation, and automotive fluid handling.  In
    addition to ITT SAES and SABS, ITT Industries business in China includes ITT
    Flygt Shenyang, a wholly owned company, which produces submersible pumps for
    wastewater treatment and industrial applications; Nanjing Goulds Pumps Co., a
    joint venture with Nanjing Deep Well Pumps Co., located in Luhe county near
    Nanjing, which produces submersible pumps, turbines and casting for potable
    and wastewater applications; and ITT Cannon Zhenjiang, a joint venture with
    Zhenjiang Connector Factory, outside of Nanjing, which manufactures mobile
    phone connectors, telecommunications switching systems and industrial
    connectors.
        As part of its overall commitment to China, ITT Industries has established
    a holding company, ITT Industries (China) Investment Company, Ltd., based in
    Beijing and responsible for business development, investment and management
    support for its in-country operations.
        ITT Industries, Inc. (http://www.ittind.com) is a leading worldwide
    diversified manufacturing company, with 1996 sales of $8.4 billion in its
    three primary business segments:  Automotive, Defense and Electronics, and
    Fluid Technology.  ITT Automotive is one of the largest independent suppliers
    of systems and components to automotive manufacturers.  ITT Defense and
    Electronics is a 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, measurement and control of
    fluids.  ITT Industries became an independent company in December of 1995 as a
    result of the separation of ITT Corporation into three distinct companies.
    
    SOURCE  ITT Industries, Inc.
    
    

    CONTACT: Tom Glover of ITT Industries, 914-641-2160; or Bruce
    Wagner, of ITT Automotive, 248-340-3473

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.

Investors

Jason Moss
tel +1 914-641-2030
jason.moss@itt.com

Media

Laurent Lawrence
tel +1 914-304-1809
laurent.lawrence@itt.com

MEDIA