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Eaton-JEIL
Product Playbook
Track Drive Motor
About Eaton
Eaton Corporation is a diversified
power management company with
more than 100 years of experience
providing energy-efficient solutions
that help our customers effectively
manage electrical, hydraulic and
mechanical power. With 2011 sales
of $16.0 billion, were a global
technology leader in electrical
components, systems and services
for power quality, distribution and
control; hydraulics components,
systems and services for industrial
and mobile equipment; aerospace
fuel, hydraulic and pneumatic
systems for commercial and military
use; and truck and automotive
drivetrain and powertrain systems
for performance, fuel economy and
safety. Eaton has approximately
72,000 employees and sells
products to customers in more than
150 countries.
Strategic Rationale and strengthen future growth in include: Doosan, Hyundai, Sany,
the very important construction Strong, XCMG, Foton, Yuchai,
This acquisition is a significant
machinery space on a global basis. Sunward, LiuGong, Jesung and
commitment from Eaton to the
Importantly, the Jeil acquisition McSun.
global construction equipment
gives us a significant position in the
market. Jeil products provide Eaton
with a market-proven, low-cost
Korean market and an important About Busan
manufacturing footprint in one of
portfolio of hydraulic components Located at the southeastern tip
Asias lower cost advanced industrial
for the fast-growing excavator of South Korea, Busan, with a
economies.
market, the largest single platform population of nearly four million, is
in the hydraulics industry. The the countrys second largest city.
portfolio includes track drive motors, About Jeil Recognized as one of the largest
swing motors, mobile control valves Jeil Hydraulics is one of the port cities in the world, Busan is a
and hydraulic remote controls that largest manufacturers of hydraulic significant industrial, commercial
complement our existing product components in South Korea. and logistics hub in Northeast
offering and enables us to better Headquartered in Busan, Jeil Asia serving as a major gateway
serve both mature and emerging manufactures a range of motors connecting the Pacific Rim with the
global markets with a broader range and control valves designed Eurasian continent. Additionally,
of power management and motion and developed mainly to serve Busan has excellent resources
control solutions that meet or the rapidly expanding mobile including modern infrastructure
exceed our customers expectations. construction equipment markets and a highly educated and skilled
The combination of Jeil Hydraulics of Asia. The products have high workforce as well as access to
product development, intimate acceptance with over 6 million such prestigious research and
platform knowledge and strong units in the field. Jeil is No.1 development institutions as the
customer relationships in this manufacturer of Hydraulic Remote Fraunhofer Institute for Applied
key segment combined with Controls in global excavator market Material Research, Rolls-Royce
Eatons manufacturing expertise, with high durability and reliability. University of Technology and the
supplier network and global market The business, which was founded APEC (Asia-Pacific Economic
presence provides us with a unique in 1978, employs approximately Cooperation) Climate Center.
combination of strengths that will 133 people and achieved 2011 sales
significantly improve our presence of US$189 million. Key customers
Mobile Directional
Control Valve
CMJ Series
Hydraulic Remote
Controls
HRC Series
Precise performance
through precise control
Selection Reference
Vehicle Management
Propel Circuit Work Circuit
System
Construction Segment
Crawler excavator
Wheeled excavator
Crawler crane
Windrow turner
Rotary drilling
Paver
Asphalt milling
Concrete pump
Backhoe loader
Wheel loader
Agriculture Segment
Combine harvester
Crane
Lift truck
In the short term nothing will change, business as usual. In the coming months, the business-run
team and integration team will be working with individual locations to determine the best short-term
and long-term approaches. The important point here is that we maintain sales volumes in the short
term while future channel strategies are developed.
While the existing Jeil organization will facilitate customer support issues together with the
Asia-Pacific (A-P) product marketing team, individual countries and their channel partners will be
responsible for after-market service and support.
For Korean Business: For all other A-P and Global For Application Support:
ILKim@eaton.com Business: JudeLi@eaton.com
For NA Business: JulieDong@eaton.com or JasonMa@eaton.com
JasonJDalebroux@eaton.com For further information and
For EMEA Business: market support:
AndreasKling@eaton.com JerryOgorman@eaton.com
or VivianWan@eaton.com
While we still have to evaluate the market and our costs, the intention is to maintain the Jeil product
line at current competitive pricing levels in line with market value.
Whats the market focus of Jeil? What about their market share in the focused platform? What were the
sales volume and revenue in 2011?
Jeils focus has been in the construction equipment market and more specifically the mini, midi and
large excavator segments. Market share in Korea is approximately 30% while we estimate their
global share at around 4%. Sales volume in 2011 was 324 thousand units valued at $189 Million.
The standard lead time ex-work is eight weeks for mobile directional control valves and six weeks for
swing drive motors, track drive motors and hydraulic remote controls. However, should you require
shorter lead times or product outside the preferred specification, contact Eaton representative for
further information.
Step 1: Your local finance people create an Inter-company account in your MfgPro and Oracle
Step 2: Maintain inter-company TP in MfgPro for all existing model codes. For all non-standard
products, please contact JulieDong@eaton.com, ILKim@eaton.com or VivianWan@eaton.com
Step 3: Your local SCM team should send the PO to 3535 Eaton Jeil facility with a copy of Customer
Trading Application form (for the 1st PO only) by fax, email attachment or courier
Company Name: Jeil Hydraulics Co. Ltd Attention: HyunDal Kim or JunYong Park (back-
Address: 526 Shinpyeong-dong, Saha-gu, up), Customer Service Support (CSS)
Busan, 604-836 South Korea E-mail Address: HDKim@eaton.com or
JunYongPark@eaton.com
Fax Number: +82 51 205 7456
Step 4: Jeil CSS team will need to open a new account via finance with trading partner details in Jeil
ERP system
Step 5: Jeil CSS team will enter the PO into Jeil ERP system and acknowledge receipt of PO and
advise estimated delivery date by email
Step 6: The normal lead-time is ex-work 6 weeks for motors and HRC valves and 8 weeks for
mobile directional control valves CMJ. Normally Jeil logistic team will ship products, ex-factory fully
packaged, by sea-freight through Eaton global forwarder. At the same time, Jeil finance team will
generate the invoice to trading partner ledger accordingly
Step 7: The invoices are being mapped to Oracle account for Eaton reporting purposes to recognize
the correct trading partner ledger and amounts.
Step 8: Trading partner will settle the invoice within 60 days terms
In the same way as you order standard Jeil products, see the instruction How can we buy Jeil
Products? above.
For Eaton inter-company sales, Eatons standard inter-company warranty policy applies.
For end customers, warranty undertakings published in the standard terms and conditions of sale
apply.
Service literature and recommended spare parts for Jeil products are currently under review and
separate service literature documentation will be released in early October, 2012.