Eaton consolidating after buying Delta's electrical division

Cleveland, OH—Eaton Corp. announced April 2 that it is integrating the former electrical division of Delta plc into Eaton's Industrial and Commercial Controls business. Eaton completed its purchase of Delta's electrical division on Jan. 31, 2003.

04/02/2003


Cleveland, OH— Eaton Corp.

'The integration of Delta's electrical operations with Eaton's Industrial and Commercial Controls business will strengthen our ability to support our multinational customers,' says Randy Carson, Eaton's senior vp and group executive. 'The former Delta operations will become an integral part of our worldwide electrical business, adding well-recognized brands and distribution networks within key European and Asian markets.'

Eaton plans to consolidate five facilities into other locations as part of the integration process. Both Delta and Eaton locations will be affected. Presently, there are about 1,700 employees at these facilities. The number of positions actually being eliminated or moved to other locations will not be known until consolidation plans are finalized. This will happen after Eaton informs and consults with relevant trade unions, work councils and other worker representatives about its proposals, which is required by labor laws in the countries involved.

Eaton reports that acquiring Delta has broadened its global electrical product portfolio to include Delta's major electrical brands, such as MEM, Holec, Bill, Home Automation, Elek, and Tabula. The purchase also increased Eaton's geographic presence in Western Europe, the Middle East, China and Southeast Asia.

Eaton's specific plans for consolidation include:

  • Operations at Delta's former Chippenham, U.K., facility will be outsourced or moved to the Chadderton, U.K., facility.

  • Existing assemblies manufacturing operations at Eaton's Ottery St. Mary, U.K., facility will be consolidated into two other facilities. These are Delta's former Reddings Lane, U.K. and Hengelo, Netherlands, facilities.

  • The components warehouse operations at Ottery St. Mary will eventually be moved to another location as well. Delta's former distribution and manufacturing facilities in Australia will be combined with Eaton's operations in Mascot, Australia.

  • Delta's former Holec low-voltage manufacturing operations in Hengelo, Netherlands, will be consolidated into the medium-voltage manufacturing facility in Hengelo.

  • The low-voltage systems operation at Delta's former Premier Street, U.K., facility will be integrated into the Reddings Lane, U.K., facility. Most of the employees will have the opportunity to continue working at the Reddings facility. This integration had been previously announced by Delta.

'Once our plans are finalized, we will act with care and concern for all of the individuals affected,' adds Mr. Carson. 'Our plans are the result of extensive and careful study of the various production capabilities, processes and capacity of all facilities. We expect to complete the majority of the consolidation plans by the end of the year, and will continue to meet our customer commitments during the transition.'

Eaton adds that its employees were told about the integration on April 2 in meetings with senior management. Employees will receive prior notice of any workforce reductions or employment transfers, in compliance with local employment laws. Severance packages, including career transition services, will be provided to all eligible employees.

Control Engineering Daily News Desk
Jim Montague, news editor
jmontague@reedbusiness.com





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