On March 30, 2021, Huanyu Group and Eaton Electric held an opening day ceremony for the joint venture Huanyu High-tech Co., Ltd. (hereinafter referred to as "Huanyu High-tech ") in Yueqing, Zhejiang, formally announcing the strategic collaboration of both sides. Wang Xunhang, chairman of the board of directors of Huanyu Group and Howard Liu, president, Asia-Pacific Region, Electrical Sector and Corporate China, Eaton unveiled the plague. WANG Tuoyu, President of Huanyu Group, WANG Chu, director of Huanyu Group, WANG Kai, chairman of Huanyu High-tech, WANG Aiying, vice president and general manager, Asia-Pacific Region, Circuit Protection and Control, YANG Yang, general manager, Asia-Pacific Region, Low Voltage Circuit Protection and Control, and other senior executives of both sides attended the ceremony.
XU Jianbin, Mayor of Yueqing, with other officials from local government, also valued this collaboration and attended this plague-unveiling ceremony and had a talk with senior executives of both sides, expressing the government’s high hope for this joint venture, which is expected to drive the upgrading of local industries and help local economic development.
Jointly invested by Huanyu Group and Eaton, Huanyu High-tech Co., Ltd. is a Chinese high-technology company which focuses on manufacturing and sales of low-voltage electrical equipment. It is committed to providing customers with value-added innovative electrical components and system solutions with high reliability and efficiency in China and through the Asia-Pacific region.
The joint venture agreement signed on December 15, 2020 by Huanyu Group and Eaton was approved by the State Administration for Market Supervision and the joint venture is named Huanyu High-tech Co., Ltd., where Huanyu Group and Eaton Electric respectively own a 50 percent stake. This cooperation between Eaton, a world-famous power management company, and Huanyu Group, an outstanding Chinese manufacturer of low-voltage circuit breakers and contactors, will grow low-voltage electrical components business in Asia.
The founding of the joint venture is the new start of strategic collaboration between Huanyu Group and Eaton Electric with the aim of creating mutual benefits and win-win situations by combining advantages of both sides together. Adhering to “Smart electric, better life”, Huanyu High-tech will promote the upgrade in electric power supply-and-demand-side management, improve the operation efficiency and flexibility of low-voltage distribution system and help customers release the potential of energy conservation and efficiency improvement by combing Eaton’s technological edges and Huanyu Group’s Resource advantages.
Located in Yueqing, Wenzhou, Zhejiang, Huan High-tech owns nearly 1300 employees, with its executives coming from both sides. Well-equipped with international management experience and processes, this company will concentrate on product R&D and develop teams of experts to create a modern channel network and gain its foothold in China’s market. Meanwhile, Huanyu High-tech will expand its global market to create a promising future by taking advantage of Eaton’s global platform.
According to “Made in China 2025”, innovation and quality play a vital role for China’s manufacturing to transform from a large industry to a powerful one. The joint venture will inject innovation into the development, production, services and technological consultation of low-voltage power distribution and industrial control products, as well as the sales, wholesales, import and export of HUYU’s products, related products and businesses. What’s more, this company will greatly promote automation and lean manufacturing and provide customers with high-quality products covering several kinds of low-voltage electrical components, including MCB, MCCB, ACB, contactor and relay, which will be sold under the "HUYU" brand. Huanyu High-tech will maintain its product positioning and keep innovative to help with China’s economic development.
“The settlement of this strategic move will grow our expectation for the company’s future.”, WANG Tuoyu, President of Huanyu Group, commented about this joint venture in this ceremony, “We believe that the combination of Eaton’s capital and technologies and Huanyu High-tech’s edges in China’s market will increase our market share in low-voltage electrical component business.”
“Our partnership with Huanyu Group represents an exciting opportunity for both companies,” said LIU Hui, president, Asia-Pacific Region, Electrical Sector and Corporate China, Eaton. “Huanyu High-tech’s strong product portfolio and manufacturing capabilities, combined with Eaton’s global scale and access to the broader Southeast Asian market, will enable us to grow our low-voltage electrical components business in Asia.”
This opening ceremony will start the joint effort of Huanyu Group and Eaton Electric to improve product solutions, enhance technological edges, develop market strategy and project more influence. This joint venture will also have a positive effect on the low-voltage sector undergoing energy transformation and help the industry achieve more sustainable development.