Cooper Industries Announces Chinese Joint Venture
Cooper Industries, Ltd. announced a joint venture with the Nature Science and Technology Company, (NSTC) a privately-held medium voltage indoor switchgear manufacturer based in Zhejiang province, China. The joint venture, 60% controlled by Cooper, will allow Cooper Power Systems access to indoor switchgear products that meet International Electrotechnical Commission ("IEC") standards, expanding upon its current offerings that meet American National Standards Institute ("ANSI") electrical standards.
"This joint venture signals our commitment to build an IEC switchgear platform that we can sell in China and throughout the world," said Cooper Industries Chairman and Chief Executive Officer Kirk S. Hachigian. "Nature (NSCT) has a strong reputation for research and development skill, as well as manufacturing capabilities. Their products are highly complementary to our own ANSI outdoor switchgear products and we can now offer a wider range of power equipment to service customers requiring high quality power transmission and distribution products. The ongoing infrastructure development, industrial investment and urbanization throughout the world, and especially in China, are generating a large demand for power and this joint venture positions Cooper to be a leading supplier to take advantage of this long-term global trend."
With 33% of sales currently outside the United States, the company states that globalization remains a key strategic initiative and growth opportunity. China, in particular, has been an area of strong growth over the past several years and Cooper has won a number of high-profile projects across several of its divisions including: Cooper Power Systems manufacturing products for the world’s largest capacitor bank project outside Beijing; Cooper Crouse-Hinds supplying explosion-proof electrical products for the PetroChina Dushanzi Petrochemical project; Cooper Lighting supplying outdoor architectural lighting solutions for several prominent sites including the Xian Gate and the Hangzhou Bay Bridge; and Cooper Menvier providing a central battery emergency lighting solution for the "Water Cube", the 2008 Olympic aquatic venue.
In addition to the NSTC joint venture, Cooper has closed six acquisitions in 2007 and states that it is maintaining a highly-disciplined acquisition strategy, building out strategic platforms that it states strengthen the core businesses with complementary or adjacent products, add more end-user specification and technology into the portfolio, and enhance the global footprint.