Eaton Plans to Consolidate Operations

Eaton Corp. will close or consolidate certain operations as part of combining Boston Weatherhead’s business into Eaton’s Fluid Power division.

The move will help the Cleveland-based industrial manufacturer eliminate duplication of services and better utilize capacity, according to an Eaton announcement. The changes should be complete by late 2003.

Eaton bought Boston Weatherhead from Dana Corp. in November 2002. Plans include:

· Eaton will close the Norwood, N.C., hose manufacturing plant by the end of the fourth quarter and move that production into the Boston Weatherhead hose plant in Newbern, Tenn. Also, the Boston Weatherhead hose plant in Ludlow, Mass., will close during the company’s third quarter and production will be transferred to Eaton’s Middlesex, N.C., hose plant.

· The Brentwood, Tenn., administrative offices that had been Boston Weatherhead’s headquarters under Dana Corp. will close during the third quarter of 2003. The administrative offices will be relocated to other sites, including the company’s hydraulics operations headquartered in Eden Prairie, Minn.

· Boston Weatherhead’s metal fittings and hose assembly located in Dana’s Pelahatchie, Miss., and Antwerp, Ohio, facilities will move to a new Gainesboro, Tenn., plant. That plant, which Eaton is acquiring, will be managed under Eaton Hydraulics plant leadership, which also is in Gainesboro.

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