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Eaton Moves Gear Machining to Hastings, NB

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May 24, 2007—Eaton Corp. announced plans consolidate some of its business segments, including those involved in machining gears for differentials.

As part of the initative, Eaton's headquarters will move $9 million in equipment from Marshall, MI, to Hastings, NB. The company is consolidating its Hastings operation due in part to its closer proximity with its existing casting facility in Kearney, NB, a manufacturing plant in Reynosa, Mexico, and the gulf ports.

The Hastings plant is part of the Torque Control Products Division, which is part of the Power Train and Specialty Controls Operations Division of Eaton's automotive group. The major market is North American rear drive and four-wheel drive light trucks and SUVs. The plant utilizes four work teams arranged for gears, gear support, assembly and housings.

According to the company's press release, this move will add 30 new full-time jobs to the plant's staff of 95.

The state of Nebraska granted $504,000 in funding to Hastings to help with the move. Of that amount, $500,000 will fund working capital related to the project and $4,000 will be available to the city for administration costs.