A frequently repeated mistruth has popped up in the comments section and numerous conversations over the years, and it’s time to once again debunk it.
No, Milwaukee Tool is NOT “owned by China.”
Inaccurate Claims
Here are examples of the misinformation I’ve seen in the comments section here, with similar arguments made in conversations:
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Milwaukee is still owned by the Chinese
And does made in the US actually matter if it’s a Chinese company
TTI, Milwaukee’s Parent Company
Let’s start at the top. Milwaukee Tool’s parent company is Techtronic Industries, commonly known as TTI.
TTI is a publicly-traded company that is listed in the Hong Kong stock exchange. TTI purchased Milwaukee Tool in 2005.
Who owns TTI? Well, it’s definitely not China.
With TTI being publicly traded, you can look up lists of the major shareholders, which according to various sources include its founders and USA-based institutional investors such as JPMorgan, BlackRock, and Vanguard.
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YOU can purchase a share of the company.
The Simplified Facts
TTI is a publicly-traded company that is based in Hong Kong, and Milwaukee Tool is an independent subsidiary that is based in the United States.
Yes, But…
I often encounter “yes, but” arguments where red herrings and other fallacies muddy the discussion. I have also had many conversations about this topic over the years where the result is “oh, I didn’t know that!”
From everything I’ve seen, Milwaukee Tool operates as if it were an independent American company, and one that is committed to American job creation and USA manufacturing expansion.
Let’s dig into that a little, as most people don’t know much about that side of the company.
Milwaukee Tool’s USA Headquarters
Milwaukee Tool is headquartered in the USA.
I’ve been to their offices, R&D facilities, test labs, as well as several of their USA manufacturing centers, and it has been evident that the company is steadily growing.
I’ve seen their battery cell test lab, their hand tool quality assurance lab, rooms where they test in-progress designs, the machine shop where they can build rapid prototypes, their power tool accessories test and development center, and more.
Also see: Milwaukee Tool Rapid Prototyping Shops – Where the Magic Happens.
Benjamen visited one of Milwaukee’s power tool accessories factories a while back: Milwaukee USA Factory Tour: How a Typical Sawzall Blade is Made.
He also saw how their hole saws are made: How Milwaukee Hole Saws are Made. And their carbide-tooth blades: How it’s Made (in the USA): Milwaukee Carbide-Toothed Sawzall AX Blade.
I visited the revamped Empire Level factory, and Milwaukee’s new USA hand tool factory when it first launched.
All of these locations are in the USA.
Milwaukee’s Continued USA Investment
In 2017, Steven Richman, then President of Milwaukee Tool, pledged the creation of more USA jobs and expanded USA manufacturing. He made good on that promise. Last year, Steven Richman became CEO of TTI.
In 2020, Milwaukee announced USA-made hand tools. They opened the new hand tools factory in 2023, where the tools are made using USA-sourced materials.
Late last year Milwaukee announced additional USA expansion: Milwaukee Tool Opens New USA Factory in Mississippi.
On top of the newer electrical screwdrivers, pliers, and cutters, Milwaukee also produces select power tools in the USA, Sawzall reciprocating saw blades, hole saws, hard hats, select hammers (via Stiletto), select squares and layout tools (via their own brand and Empire), and additional power tool accessories.
In October, Milwaukee said that their USA workforce has grown to over 10,000, and that they invested $675 million in USA expansion projects. They invested more than $250 million over the past few years in Mississippi.
I asked Milwaukee Tool for some recent numbers, and they provided the following:
They now have 18 facilities in the USA, mainly research, development, and manufacturing, and have invested $1.8 Billion in USA expansion efforts in the last decade. They estimate that their investment has led to over $11 Billion in economic impact in the last decade.
Milwaukee says they invest over $10 Million annually towards driving growth in skilled trades, and have committed to invest another $200 Million by 2030.
In the past 5 years, Milwaukee expanded its USA footprint by 5.4 million square feet and added 4,000 American jobs.
How many construction jobs do they support with their regular expansion projects?
Look at their job board. Milwaukee currently has openings at 15 locations, including positions in manufacturing, engineering, and operations.
Here are some of their recent full time postings:
- Machine Technician – Greenwood, Mississippi
- Engineer: Material Handling and Automation – Olive Branch, Mississippi
- Quality Technician – Grenada, Mississippi
- CNC Programmer – Mukwonago, Wisconsin
- Design Engineer – Brookfield, Wisconsin
- Manufacturing Engineer – West Bend, Wisconsin
- Repair Tech – Greenwood, Indiana
Few people think about what Milwaukee Tool actually does here, and it’s actually a lot.
Muddy Semantics and Contexts
A lot of people get confused about all the nuances, and it’s easy to see why – things get messy with global corporations, whether publicly or privately owned.
Last year a Canadian company bought USA drill bit brands from a Chinese company. Those are American brands that were owned by a company based in China and now a company based in Canada.
KKR, a USA-based private investment firm, owns Metabo (headquartered in German) and Metabo HPT (formerly Hitachi). Would anyone argue that either are American companies?
Festool’s parent company is based in Germany and owns SawStop, which is based in the USA. So what does that mean about SawStop?
A UK-based private equity firm now owns Malco Tools, which is based in the USA.
Milwaukee Tool’s parent company is publicly traded, with major shareholders including US investment firms, and the company itself is based in the USA. Is it relevant where its global parent company has its head offices?
If TTI moved their headquarters to a different country, would that change Milwaukee Tool’s operations in any meaningful way? From everything I’ve seen and understand, the answer is no.
Beware Logical Fallacies
TTI is a publicly-traded company that is based in Hong Kong, and Milwaukee Tool is an independent subsidiary that is based in the United States.
That’s as simple as things can be described without losing accuracy.
Jane loves knitting. John loves Jane. Therefore, does John love knitting? No.
If you were born and raised in California and then adopted by parents who live in Texas, but you still live in California, are you a Californian, or a Texan?
Some have tried to argue that since Hong Kong is part of China, TTI is technically based in China, and thus Milwaukee as part of TTI is a Chinese company. This is a logical fallacy that results in false conclusions.
Milwaukee is an American tool brand that seems more committed to job creation and USA production expansion than other tool brands. This is something we can argue about.
TTI is a publicly-traded company that is based in Hong Kong, and Milwaukee Tool is an independent subsidiary that is based in the United States. These are facts.
Hon Cho
Gotta ask, does ToolGuyd have a financial relationship with Milwaukee or TTI?
I believe I recall you mentioning some sort of support from DeWalt (a SBD brand, not TTI) in the past. I assume that if you have a financial relationship with TTI or Milwaukee you would disclose it.
There are an awful lot of political elements to the discussion of American vs foreign control and ownership of businesses. The current political environment is beyond the scope of your discussion of TTI / Milwaukee, but it looms large in the general discussion of what is an American business.
Stuart
Milwaukee is an advertiser (set-and-forget banner spot, NOT content sponsor), but not TTI (Ryobi, Ridgid at HD, Hart). SBD has been a repeat sponsor. You’ll see disclosures for content sponsorship and “advertisement” labels adjacent to most direct-buy ads.
I’ve been pushing back on these sensationalist mistruths for a while. For example:
https://toolguyd.com/dewalt-flexvolt-plus-new-20v-max-tools/#comment-802998
IT’S IN WISCONSIN. I’ve been there and seen with my own eyes that it’s not just a suite in a business center.
https://toolguyd.com/milwaukee-cordless-power-tool-battery-tech-2022/#comment-1434010
Here are some earlier ones:
2012: https://toolguyd.com/milwaukee-new-product-media-event-2012-recap/#comments
2016: https://toolguyd.com/milwaukee-questions-2016/#comment-776525
Some of these are from the same person, even after they were corrected multiple times.
I noticed that you said Dewalt was owned by a different company. At one point I felt it necessary to clear that up in a post as well.
https://toolguyd.com/dewalt-milwaukee-tool-not-the-same-company/
And about HF and Snap-on not being the same company:
https://toolguyd.com/does-harbor-freight-own-snap-on-tools/
I was on the phone with an industry friend recently, and after a new Milwaukee tool came up they said something like “you know, they’re owned by China.” I told them that TTI is publicly traded on the HK stock exchange and they fact-checked it in real time. This has become an incessant myth.
Gary
Fact Check … TRUE!
Thank you for correcting these myths and lies.
skfarmer
2 companies i refuse to buy from. milwaukee and tekton..
i just don’t like em. i take abuse for it but i just don’t like how they operate. i don’t hassle people who like em and and i expect the same.
Josh
I dont think I own any tekton I know I’ve bought some in the past for new techs as part of their signing bonus though. Seemed ok, what’s your issue with them?
I feel the same about Milwaukee, being in the auto tech world I was an early adopter but I’ve had a lot of quality issues with the m18 line.
I still have my m12 light, 3/8 impact, impact driver and caulk gun that are all about 12 or more years old but those were my last purchases and I have all my M18 stuff away.
Mike
“i just don’t like how they operate”
They don’t have a reason other than “vibes”.
StopMike
Do they need one other than “vibes”? You have detailed explanations for everything you don’t like? Nope, I can tell by your response .
Not to mention they literally explained themselves just like you quoted.
skfarmer
i am a farmer and have worked in various trades. hvac install and repair, home appliance repair and delivery, grain elevator repair and maintenance, as well as being certified in heavy extrication with my local fire dept. as well as any and all things being a farmer and homeowner can entail.
i do not like milwaukee power tools and their ergonomics. i also don’t care for most of their hand tool designs such as socket shape and handle shape.
to me, tekton is nothing more than warmed over michigan industrial tools. i want nothing to do with them. as far as their us mfg. let me know when stuart or anyone else has seen their mfg facilities. someone makes it but it sure as hell isn’t tekton. if you want the pliers,, punches, chisels and pry bars, go to wilde and skip the middle man. at least milwaukee is actually proud of their us made stuff, where it is made and who makes it. i will give them that.
does that explain the vibes i have mike?
they are good enough reasons for me to spend my money elsewhere and not follow the herd. i truly do not like how either company operate and the tools they offer. i think you poking at me for having an opinion you may or may not agree with shows little or no class.
Josh
Thank you for taking the time to respond.
All good enough reasons for me I was just curious.
Agreed on the Milwaukee ergonomics, I get hot spots Olin the webbing of my thumb/finger running a Milwaukee all day. No such issue with my Festool or even Bosch drivers. Big complaint about Busch impacts though is 2 handed bit insertion. Pull ring bank insert bit. Everyone else you just push the bit in and it snaps in place.
I actually gave my Bosch one away
TomD
Milwaukee especially the M12 really needs the big ham hands; having the battery inside the handle is a huge difference unless you have catcher’s mitts for paws.
Luckily, I do, and so I can join the Red Army.
What I don’t like is I can’t figure out the deal with them vs that hand truck company.
ITCD
They do make their own screwdrivers (they’ve announced this will be changing at some point), and picks/hooks, in addition to angle wrenches and crowfoot wrenches. The wrenches are done by cutting them on a laser, running them through CNC, and doing other processes to them, rather than typical drop forging. Having had loose contact with their director of manufacturing Cory, he is very proud of what they do in-house, and they do have videos of their process available online.
Most US manufacturers have a “trust me bro” attitude about it. Everyone’s worried about their secret sauce of how they do what they do even though commonly they’re all doing the same things the same way. Channellock no longer offers tours. Anyone been to the Zona or Xuron or Nupla or Martin to certifiably independently confirm that yes, they do make at least some of their own stuff? Even Wilde, actual hard evidence of it is hard to come by, you’re just gonna have to trust that they do.
Josh
This feels awfully propaganda-ey
You left out the factory closures you covered right here on the page, that’s weird.
Andrew Holmes
Are you talking about the craftsman factory closures? There’s not been an article about Milwaukee closing buildings recently just about them opening them.
Stuart
Milwaukee did NOT close their hand tool factory, and recently launched new cutters that are made there – https://toolguyd.com/milwaukee-angled-diagonal-cutting-pliers-launch/ .
Josh
Didn’t they close a Mississippi factory a shortly after opening it?
Pretty sure you covered it
Stuart
Ah – that one closed 2-1/2 years ago – https://toolguyd.com/milwaukee-tool-clinton-mississippi-closure-2023/
At the time they said that 150 workers were impacted. They were expecting to create 800 new jobs at another facility that was also being expanded – https://toolguyd.com/milwaukee-usa-manufacturing-expansion-2022/ .
A lot of brands had closures and layoffs around the same time.
https://toolguyd.com/stanley-black-decker-closing-facility-south-carolina-2024/
https://toolguyd.com/makita-usa-layoffs-2023/
Closures suck. I tend to look at net increases and investments, especially as they compare across the industry.
ITCD
I think that’s the more fair way to assess it is by net. For example, SBD closed the Irwin Hanson plant in Maine, but what they did was move production to Tennessee. It’s easy to point at the closure and yes it stinks those folks in Maine lost their job, but they were simply consolidating facilities.
Ed N Lewton
I say that not one power tool from Milwaukee is made in the USA, because I know from buying one of the last ones made,a low speed high torque electric drill which I ordered through the local hardware store and after three tries I finally got my American made drill,yeah the company may make sawzall blades,hole saws which are not power tools by the way;in fact I cannot name one power tool that is made in the USA for there are none,your story is false and misleading so admit before the public!
Stuart
Packout vacuum via Acme Tools
“Made in USA.”
Scott
Might have been easier to keep manufacturing here, rather than ship it all overseas, then start making a few things here and say that your expanding American manufacturing.
Stuart
Modern cordless power tools were never made here.
Even when SBD was assembling select cordless power tools here, key components were imported. https://toolguyd.com/dewalt-built-cordless-drills-in-usa/
Milwaukee Tool only launched hand tools under TTI ownership, and I doubt they would have seen much demand for USA-made tools at the time, let alone been able to build manufacturing from scratch.
Half of SBD was a hand tools company and yet they couldn’t manage to successfully build a new production facility.
Klein Tools makes a lot of hand tools in the USA but chose to outsource most of their expansion efforts.
New jobs and new knowhow is better than nothing.
Ask a company like Crescent about when they’re bringing back USA production.
Leatherman just launched new USA-made knives, and all anyone is talking about are the prices.
I appreciate what USA production we can get, because these days it isn’t much.
Scott
But their corded tools have been offshore as well. I just was at my local Ace, and both the corded sawzall and super sawzall say made in China on them. (I do have pics to prove it). Their harbors for holes also use to be made in USA, now they’re imported too. My point was the stuff they used to make in the U S they shipped over seas. If I made 100% of my products in the U.S., then shipped everything overseas, then decided to expand domestic manufacturing by making 1 product in the U.S., that seems like … I don’t know… not honest to me
Stuart
Can you send me pics (email, imgur, or social media)? The last I checked I was told they’re still made here. I wouldn’t be too surprised, as the market for corded tools keeps shrinking.
I don’t know about arbors, just the hole saw cups.
Bonnie
ACME Tools lists their COO as China as well.
https://www.acmetools.com/milwaukee-m18-fuel-super-sawzall-bare-tool-2722-20/045242006465.html
Going through their holesaws on Acme’s website it looks like the Hole-Dozers are still USA made, but the diamond and shockwave branded ones are all from Taiwan, and the arbors are Chinese.
https://www.acmetools.com/milwaukee-7-16-in-large-thread-quick-change-arbor-49-56-9100/045242200832.html
https://www.acmetools.com/milwaukee-shockwave-impact-hole-saw-3-piece-set-49-22-4800/045242321162.html
Stuart
We’re talking about corded/AC powered, not M18.
And standard hole saws, such as this 28pc set at Home Depot, not the couple of impact ones.
HD shows individual with-arbor sizes as being made in USA with global materials. You’d have to check the packaging on the arbors to know for certain.
Scott
Sent via email
Stuart
@Scott, I got it, thanks! Darn I was hoping you weren’t right. I took the corded Sawzall part out, as your images clearly show it being labeled as made in China.
They do still produce some power tools here, such as the compact Packout vacuum (again, as of the last time I checked).
I ask around regularly, and tool brands are not at all interested in making cordless power tools here.
Matt
I appreciate this type of article as I was definitely hearing one-sided perspectives that were misleading / confusing. Propaganda and opinions aside, it’s refreshing to read discussions that remind the reader of logical fallacies, muddy semantics and context. All conecepts that are vastly important for a proper discussion.
I love tools, especially when they are pushing the edge of market competition for the right intentions. I like to believe Milwaukee, Dewalt, Ryobi, Metabo, Klein, Proto, Snap-On, Craftsman, etc all have/had their niche lane of expertise. Then market share or share holder demands gets the best of every for-profit company. Its how we end up with battery and plastic storage box wars.
One humble tool enthusiast just hopes that the competition leads to lower prices while also improving the everyday lifestyles of the neighborhood. For some the neighborhood is as small as a few blocks; for some the neighborhood is as big as continents!
Chris D
I’m confused about the purpose of the article.
Being an independent subsidiary means they are controlled and influenced by the parent company. That’s how this kind of ownership structure works.
TTI being publicly traded does not change the fact that they are a Hong Kong-based (Chinese) company.
So Milwaukee, at the top level, is owned, influenced, and controlled by a Chinese-based company, TTI. It’s a fact, and I can’t see how it’s in dispute.
I’m purposely avoiding making a value judgement about whether or not this ownership arrangement is a “good” thing, and am not drawing the “false” conclusions you caution about in the article. I’m only reacting to the fact check.
I can’t tell if you’re either trying to inform that they are not directly owned by the Chinese government, or if you’re trying to add some separation between Milwaukee and the country of their owner for some patriotic help for the brand, or if you are trying to inform that you know TTI has absolutely no influence on Milwaukee.
Either way, I will still be buying M12 tools and other products. I just think this was a bit of a strange article.
Stuart
The purpose of this article is for me to not have to repeat the same info every time there’s a claim of “Milwaukee is owned by China!” in the comments section.
Given the nature of the comments I have seen over and over again, it seems a lot of people mistakenly believe that Milwaukee is just a name for an overseas company, or that they are somehow directly owned by the Chinese government.
Frequently, after erroneously saying something about the location of Milwaukee’s HQ, some will say something like “yes, but don’t they send all of the profits back to China?” Frankly, no one can trace where every dollar ends up, but we do know that Milwaukee is constantly investing in jobs and expansion here, which makes that easy to debunk.
Ed
People conflate Milwaukee HQ with that of TTI. It’s lazy and low-information, but that’s the reality of it.
Sinclaire
Appreciate the thoughtful article. As you’ve said the question of ownership here is somewhat muddled so I’m sure your detailed explanation has helped clear that up.
One of my recent comments is quoted so figured I might as well respond. It wasn’t entirely accurate for me to refer to Milwaukee as a “Chinese company” but it wouldn’t be entirely accurate to refer to it as an American company either.
Personally I’ve heard lots of comments on other sites as well as on job sites to the effect of “I buy Milwaukee because it’s an American company and they’re made in the US.” Speaking about power tools usually. I find these comments annoying since they’re patently incorrect and usually made by someone who would scoff at anything Made in China. So, my comment on a previous article wasn’t exactly accurate but stemmed mostly from my annoyance at other misconceptions about Milwaukee. It wasn’t intended as a value judgement either, and Milwaukee’s efforts to increase manufacturing, especially in a state desperate for an economic boost like Mississippi, are extremely laudable.
The only thing in this article I would push back on (as others have here) is the notion that TTI being publicly traded somehow means it isn’t a Chinese company. US firms invest in tons of Chinese companies, that doesn’t make them any less Chinese.
Stuart
The problem with misinformation is that it’s easy to pick up and repeat, and harder to fact check.
I’ve had to correct people who thought Milwaukee is its own company or that they produce everything here. But the “their HQ is in China” and similar has become more pervasive, and often spread maliciously because people prefer other brands or dislike Milwaukee for whatever reason.
I try to address any misinformation or misconceptions in the comments, because you never know if it’ll be read and taken as fact by 100 people or 100,000.
TTI being publicly traded is an important detail, because there’s a distinction between a company or their head offices being based in China and being “owned by China.” Skipping details is a shortcut that leads to mistakes being made.
CM
Your comment summarized my feelings as well. Additionally, because Milwaukee’s parent company is listed on the HKEX, it isn’t held to the same financial metrics and reporting standards as a company on an American stock exchange, which allows it to operate differently.
KokoTheTalkingApe
“Being an independent subsidiary means they are controlled and influenced by the parent company. ”
Not necessarily true. The level of control varies, and it’s independent of the legal arrangement between the companies. Some subsidiaries are truly managed independently. Some are just shells that exist in name only so the brand can be licensed out.
And as Stuart tried to point out, being “Chinese” isn’t a cut-and-dried thing, at least not when applied to corporations. Neither is “American,” for that matter. What would a 100% American company be? Would they ever buy parts from China? Intellectual property? Raw materials? Could their employees be based in other countries? Could they use foreign contractors? The only truly 100% American tool I’ve ever used is a hard-faced mallet some guy made in his garage, except the aluminum probably came from Canada.
The fact is we don’t really have the right words to describe these situations easily. There are shades of gray. And things and complex. And change often.
But re Milwaukee, at least some of the money I’d spend goes to American workers, more than a lot of other companies. And the tools are good. That’s good enough for me.
Chris D
The level of control varies, you are right, but it’s between 100% control and something greater than 0%. There’s no reasonable chance TTI does not influence Milwaukee. It would be irresponsible to the shareholders to let a subsidiary basically run alone, in a vacuum, and not align it to an overall group strategy to maximize the return.
To simplify, if a company is “Chinese” or “American”, etc., just see where their global headquarters is. Microsoft’s is in the US. They are an American company that operates globally with a global supply chain. TTI are a Chinese company that operates globally, with a global supply chain.
Whatever is the nationality of the company doesn’t give a value judgement.
Sinclaire
I don’t get what’s so hard about this particular point. Headquartered in the US, American company. Headquartered in HK/China, Chinese company.
TomD
That’s too simplistic- in my personal experience I’ve seen companies headquartered in one country, with the vast majority of R&D and support in a second country, and manufacturing where you’d expect it in a third.
And often the headquarters is basically on paper, and the company is mostly lead from a technical subdivision.
Shane
Last I checked, they have opened 8 different locations here in my home state of Mississippi so I have no complaints about the company and I love the tools as well. They have made a large investment in a state that is in desperate need of it. Regardless of ownership, the locations are real, the jobs are real and the local economic impact is real. It’s time to put the COO purity test to rest and pay more attention to the investments that some of these manufacturers are making locally. It’s becoming nearly impossible to source everything that goes into a product from one country. Consider everything you own that contains any rare earths. Do you drive a car with a catalytic converter? Own any lithium ion batteries? Some part of these originated in China. The “good ole days” are gone. I own a couple of Veto tool bags. You can’t argue the quality or durability. Made in China. You have to judge things on their merits, not where it came from.
Dave F
I live in Mississippi also and Im happy to see the amount of investment Milwaukee has done in Mississippi.
David
Any COO discussion is a soup of nationalism, quality perception, prejudices, etc. It’s as complex a topic as any aspect of global commerce.
But your final point about quality should be expanded. Just because something is made in China it is not required to be lower quality.
We all buy products made in a multitude of countries. We have products made in the US that are poor quality, or maybe excellent quality. The very same is true for products made in China. The real determination of quality is what the buyer specs and wants to pay.
One clear truth is that many companies moved manufacturing to China simply to get the cheapest cost. When cheapest is the goal, this almost always means lower quality. I don’t know how most other people see overall product quality today, but I see it as much less than than 10 years ago. So much of what we buy now — made in China or not — seems disposable. This is arguably not simply because more things are made in China; I see it as more companies taking advantage of the *option* of lower cost, lower quality, higher profit manufacturing in China.
If you buy something made in China that is junk, it’s very likely because the people who sold it to you had it made that way. The same is true if it’s something of high quality.
Honestly, I currently have no better sense of overall quality from US-made products than I do with those made in China. The brand’s commitment to quality is more important than the COO.
SlowEng
Fact check. Milwaukee tool is a Subsidiary of Chinese Company.
First being publicly traded has nothing to do with whether or not a company is Chinese or not. BYD, the Chinese car company, has Warren Buffett as an investor along with other major American financial institutions, is BYD therefore not a Chinese company? No it’s Chinese because it’s domiciled in China and has to follow Chinese law.
Hong Kong is part of China not a independent nation.
I use to work at Yokohama North America. An independent subsidiary of Yokohama Japan. Yokohama North America has headquarters in California and plants in the USA. They were stilled controlled by the parent company. What investments to make and what developments to pursue was all coordinated with the parent structure. Milwaukee is no different.
Milwaukee did not setup its own plant in China to build just Milwaukee stuff separate from any other TTi product line. There will be a lot of design and resource sharing between all the TTI brands to coordinate costs and time. Milwaukee tools ultimately has to follow what TTI tells them because they are owned by the parent company.
Independent subsidiary is legal term of art. It’s used to setup firewalls for litigation between various entities owned by the same parent entity. If Ryobi, as an example, has battery fires that cause damage to a home, then litigants may only be able to go after Ryobi, but not Milwaukee. Even though both companies are owned by TTI. This is not 100% but an important function of subsidiary companies.
The Fact is Milwaukee Tool is subsidiary of Chinese Company.
Stuart
But not “owned by China,” which is the common myth.
I don’t know the full extent of production sharing. We’ve asked about this, and have been told that many tools from different brands come out of the same factories but from separate lines and with different parts, following independent development.
There are times when like-themed products launch from different brands in a good, better, best tiering. Milwaukee operates independently from Ryobi, which is part of the same division as Ridgid. They’ve all said they don’t collaborate across (Milwaukee and TTI North America) brand lines, but it’d be foolish to ignore signs of common strategy at times. I’ve assumed that at higher levels there are “brand is working on a [tool], other brand should too,” directives, or it could come in the form of a customer (Home Depot) request.
But how they operate is very different compared to say Craftsman and Dewalt, where teams might be shared between the brands. You don’t have Milwaukee designers working on Ryobi tools, or vise versa, even if you have shared factories.
“Milwaukee tools have Ryobi parts” is another fallacy with no known signs or examples of proof.
David
Any company that has presence in China controlled by Chinese communist party.
China is like Soviet Union. None of them are independent. All their goals are subordinate to CCP.
So TTI is owned by China. Hence Milwaukee is owned by China.
Stuart
Sorry, but no; Milwaukee Tool is an American company and is not “owned by China.”
Josh
Let me ask you this Stuart, since you are knowledgeable about this corporate structure: if TTI decided to close all American plants and relocate the entire structure of Milwaukee to China (I am not asking if this is likely or a good business decision), could they do so?
Stuart
I don’t believe so. It’s my understanding that it would ultimately depend on the board of directors and even a shareholders vote.
Let’s say that it comes to a vote, the relocation passes, and the US government doesn’t step in (I’m confident they would). In that case, I think that the most likely outcome is that Milwaukee Tool would be acquired or spun off into its own company. There’s no fathomable scenario where Milwaukee Tool could simply be uprooted and moved to China.
I don’t see any way for TTI to have the kind of power to do what you’re asking.
Chris D
This is where there is a gap in understanding. In the scenario, if “TTI decided it,” then it means it’s been decided by the executive board. The shareholders could disapprove and express it by voting the board members off, but the board would likely not take that decision if they couldn’t defend it (and their jobs) to the shareholders.
That’s what is being missed here. TTI is the parent company, and they are in charge.
Dave F
Horst Pudwill is the majority stakeholder of TTI. Not China.
https://www.forbes.com/profile/horst-julius-pudwill/
Rick
“Any company that has presence in China controlled by Chinese communist party… So TTI is owned by China. Hence Milwaukee is owned by China.”
This simply is not true, and claims like this demonstrate why this article is necessary. TTI certainly has to conform to the Hong Kong flavor of Chinese law, but there is no evidence that it is controlled by the Chinese government.
TTI is a multinational company which is headquartered in Hong Kong (as opposed to mainland China) for significant tax and business reasons. That’s it. It’s worth spending a few seconds just looking at the directors of the company:
https://www.ttigroup.com/company/our-board#executive_directors
I expect that there are plenty of American companies with more Chinese faces on their board!
And if the board of TTI found that government overreach was beoming a serious problem, I suspect that they could simply shutdown their operation in Hong Kong and move somewhere else.
al
Cant say I care wither way, but its a bit disingenuous (if not outright false) to claim TTI is not a Chinese company simply because its shares are traded publicly. That would be like saying Yamaha is not a Japanese company because its stock is listed publicly. Just not true…
Stuart
Publicly traded and based in HK/China. How one interprets that is open to opinion.
“Milwaukee is owned by China” is often present as fact, and that’s completely inaccurate.
What about Cleveland, which traded hands. Are they now “owned by Canada?”
Or Stanley Black & Decker’s Facom, or USAG? Are those European brands or American?
People seem to change their logic on a case by case basis because they prefer some brands and dislike others.
al
Its not open to opinion though, the nation in which a company is incorporated/domiciled is a cut & dry fact. Milwaukee IS owned by a Chinese company. There’s no other interpretation or opinion that enters into the equation. Whether that matters is a matter of personal opinion
Stuart
You’re talking about TTI. TTI is domiciled in HK, but Milwaukee Tool is domiciled in the USA.
Cleveland Tool was recently owned by a company domiciled in China, and their current parent is domiciled in Canada. Cleveland never uprooted and to my knowledge remains domiciled in the USA.
Martinez Tool is domiciled in the USA, but their parent company is domiciled in Sweden. Their parent, Hultafors, also owns Johnson Level, which is domiciled in the USA.
If you were born and raised in California and then adopted by parents who live in Texas, but you still live in California, are you a Californian, or a Texan?
You’d be a Californian, as a fact, and deviation from that becomes a matter of opinion. An extension of the myth that we see with TTI and Milwaukee would be “neither, you’re owned by Texas.”
al
You state in the article that the following claim is inaccurate: “Milwaukee is owned by a Chinese company”. That is wrong. Milwaukee IS owned by a Chinese company (TTI). There’s no 2 ways about it
Stuart
“Owned by a Chinese company” is still inaccurate. They are owned by a publicly-traded company based in Hong Kong.
Maybe it wasn’t the best example, in which there are countless more that are even more inaccurate.
In any case, Milwaukee Tool is an American company.
Bonnie
TTI being publicly traded or domiciled in HK doesn’t mean they aren’t a Chinese company Stuart. I don’t understand why you keep repeating that.
Hong Kong is part of China, regardless of the “one country two systems” concept (which has been wearing down as of late as the PRC exerts more active control). Would you claim that a Welsh tool company isn’t British?
Stuart
@Bonnie, Wales is part of Great Britain but not part of England. Details are important.
Bonnie
@Stuart Yes, and the detail here is that Hong Kong is part of China and answers to the PRC.
Bonnie
There is an important difference between the statements “Milwaukee is owned by a Chinese company” and “Milwaukee is owned by China (PRC)”. The first is true, the latter is false.
The article above is good and important, but I think you are also somewhat conflating these two separate statements.
Dave F
Horst Pubwill is the majority stakeholder of TTI. Not China.
https://www.forbes.com/profile/horst-julius-pudwill/
Bonnie
No, he is not the majority shareholder. He is the *largest* shareholder, as they state on their website. Majority shareholder means they control 50% or more of controlling shares (Google AI gets this wrong if that’s your source). Pudwill owns just under 20%, with his family holding an additional 1.8%.
TTI has no majority stakeholder.
Daniel L
Honestly…
There’s a really, really salient critique to the kind of layers-upon-layers of obfuscation and ownership in these corporate structures.
Alienation is a feature of these systems. Not a bug.
Stuart
It’s not a feature and not a bug, just the muddy nature of how things are today with mergers and acquisitions and companies within companies.
The same company owns GEICO, Fruit of the Loom, Duracell, Dairy Queen, and Jazwares (toys). How is the average person supposed to know this?
Many people see “Milwaukee Tool is owned by China” on social media, take it as fact without checking, and the repeat it somewhere else.
Collin
The rabidness in these comments is so strange. People seem to be nearly foaming at the mouth about the corporate structure of Milwaukee. To your point Stewart, the investment from TTI via Milwaukee into American manufacturing and engineering is outstanding. I’d say it’s better than most American-based companies.
Just wait until people realize that their “American” Craftsman power tools were/are manufactured by TTI.
sdsdv10
“Just wait until people realize that their “American” Craftsman power tools were/are manufactured by TTI.”
I thought Craftsman was owned by Stanley Black & Decker, which I believe is a different company than TTI.
Stuart
TTI made some Craftsman cordless power tools for Sears. To my knowledge that ended when SBD – Dewalt’s parent company – acquired the Craftsman brand.
Regarding the nature of comments, the frequency of off-topic rantings and ramblings has greatly increased over the years, as if people feel personal politics need to be injected into every single conversation.
As long as arguments are well and politely articulated, civil discussion is welcome.
Bill
TTI owns Milwaukee. Therefore, it would have the final say. It would be pointless to own a company and then not care about any decisions dealing with product development. Therefore, IMO, it is a Chinese run company. And, I don’t care. I love my Milwaukee stuff. I just wish that it was easier on the wallet. I have seriously considered going with Craftsman because I am more of a DIY person, but I love good tools. What am I supposed to do. 🙂
TomD
I mean if we go to “not going to happen final say” then if China orders TTI to do whatever, the US could nationalize Milwaukee.
It doesn’t really matter in the actuality of day to day life.
Robert
not “owned by China,”
Actually, if they are operating out of Hong Kong they are to some degree. Any Chinese nationals there are subject to government dictates. So the Chinese government regardless of the percentage of ownership has influence on TTI to at least that degree.
Stuart
John lives in Texas and is subject to local laws. John Jr. lives in Alaska. By your logic, the Texas government would have influence over John Jr’s activities.
You fell into a common logic trap.
scott
You did too. China dont play fair. If Texas says they will jail ole dad, until John Jr. send them some info, wonder if John Jr sends it.
Stuart
John Jr was raised to deny control to blackmailers, so no. “I wonder if” and other conditional hypotheticals are not a basis for determining factual truths.
Ed
Except you are affording the same “rights” for lack of a better term to corporations (a legal entity) as you are a person. It does not work that way.
Multi-national corporations have defined structures. Ultimately, the proverbial buck stops with TTI in HK. The same applies to Motorola Mobility in HK, Firestone in Japan, or Budweiser in Belgium. All of these are American brands which operate as a subsidiary of a foreign-controlled parent company.
Stuart
If we were talking about “TTI Wisconsin,” I might agree with you, but we’re not.
The nuances of an American company owned by a publicly-traded company based in HK gets messy, but it remains completely untrue to argue “Milwaukee Tool is owned by China” or “Milwaukee is headquartered in China.” Those are among the most commonly parroted myths about the subject.
Ed
The same could be said for the other examples I provided. Spin it any way you’d like, but that’s the case.
How much experience do you have working for an “American” company with foreign ownership?
I’m not here to question your competence, but I’ve spent much of my career at companies with similar arrangements to Milwaukee. Understanding how these organizations function isn’t something typically understood by someone who hasn’t worked under such an arrangement.
Chris D
This is exactly where I’m coming from. I work for a company in the US that, if I told you the name, you would google them and conclude they are a western-European company because that’s where the headquarters is. It’s even publicly traded on a European exchange.
I could give you a tour of our US plants, US test labs, and you might think we are a US company. But: we are a subsidiary of the European company, which is a subsidiary of…a Chinese company. And the Chinese company absolutely has a say in how we operate and what we do. We’re a Chinese company. And the profits make their way back there. Again, no value judgement, it’s just the way it is.
That’s the perspective I’m trying to add here, as someone who lives in this kind of business each day.
scott
As far a owned by China, Jack Ma, would disagree. As he found out, the Party is will to do things to help folks understand, certain things are not tolerated. China does not own TTI, but they can control lots of things if they want to, just as Jack Ma found out. If TTI was doing advanced microchip research you can bet that it was getting shared, power tool research not so much. Anyone doing manufacturing in china has to understand this. Only company that stayed away that I know of was Stihl, and dang do they make some good tools. Most of there US manufacturing is done in Va Beach, and has been for many many years.
Dave F
Publicly traded corporations are owned by their shareholders.
According to public information, Horst Pubwill is the largest shareholder of TTI.
That doesnt seem too Chinese to me.
Of course TTI has to abide by Hong Kong law because they are domiciled there.
But owned by China, not really.
https://www.marketscreener.com/quote/stock/TECHTRONIC-INDUSTRIES-CO–134983/company-shareholders/
Scott K
You’ve addressed this and other misconceptions several times – while I feel as though it’s important to set the record straight and educate people, some aren’t open to hearing different than what they believe. Some people immediately shut down when they hear “China.” Buying Milwaukee tools made in China still benefits Americans because those purchases support the many sales, engineering, and other positions held by Americans in America. This isn’t really a difficult concept to grasp if you’re open to it.
Stuart
As you say, some people will ignore facts to believe what they want to believe. With this, “Milwaukee is owned by China” and “Milwaukee is HQed in China” have become sensational myths that some people believe or perpetuate without fact-checking.
Generally speaking, Harbor Freight’s Chicago Electric and Pittsburgh brands are just labels attached to imported tools. Many people realize this at different times – or not – and so it doesn’t take much for people to be erroneously convinced that similar might be true for other brands or companies.
“Milwaukee is owned by/HQed in China” is inaccurate, but believable if you don’t check the facts.
Some people will repeat misinformation as part of some agenda, but there are enough that simply haven’t fact-checked the claims.
Norm
Does this mean SK Tools is technically an American company?
Stuart
Not much is left of SK, and so I’d say no. As I understand it, SK is now an American brand.
Jack
As SlowEng said it rather eloquently below, the term “Independent Subsidiary”, which you are in part hanging your hat on, does not really exist in terms of sensitive or major decisions. Would we be having this same discussion if Milwaukee made defense equipment instead of drills? If you think that the parent company couldn’t access any technology it wanted from the “Independent Subsidiary” whenever it wanted to, you’re being naive. And if it wanted to use a Milwaukee technology in a Ryobi product I think its additionally naive to think there is some sort of “wall” between the brands that would prevent that. I’m not sure why you are speculating that that couldn’t happen. It’s wonderful that Milwaukee has greatly helped the economy in Mississippi and has created jobs. And its kept a great American brand alive and made it a major player in the tool segment. Foreign investment here is not automatically a bad thing. If it makes you feel better to say that “Milwaukee isn’t owned by the Chinese” then fine, I would concede that point. But I’m not sure that’s the right question to begin with. If the parent company is domiciled in China, then various actors in China have ultimate influence and access to the “Independent Subsidiary”, plain and simple, including moving the company out of the US if they see fit, so I disagree with you on that as well. But if its in the best interests of the parent company to keep the mfg. here, then they will continue to do so, but not because Milwaukee is independent. Because of the way in which China competes, and additionally how the Honk Kong stock exchange and its rules differ from ours, your example of Texas / California is not a good one, in my opinion, to the subject here. I love your site and the work you do here, and I’m not meaning to throw shade your way, but I don’t think many folks here are buying your argument.
Stuart
Are there any historical examples where what you propose could happen has happened?
KokoTheTalkingApe
Another myth I’ve heard a few times: “Milwaukee is made in the same factory as X so they’re really the same tools and Milwaukee’s high prices are bullshit.”
Not true, and even if they were made in the same factory (as happens with some heavy woodworking tools like lathes), that doesn’t mean they are the same tools. They have different parts going into them, they have different quality standards, and they have VERY different after-sale support, return policies, etc. I don’t care if Rikon is made in the same factory as a Harbor Freight. I can call Rikon and immediately talk to an engineer who actually knows the tools, even the discontinued ones. That’s worth money to me.
Stuart
Yes – that’s another big misconception, but also one that’s much more difficult to debunk. It’s false, but credible.
TonyT
One question for everyone who disagrees with Stuart:
Was Milwaukee an American company before TTI bought it?
Note that Milwaukee’s previous owner was Atlas-Copco of Sweden: https://www.contractormag.com/tools/article/20875773/milwaukee-electric-aeg-bought
and I’ll say that, without doubt, TTI’s ownership has been better for Milwaukee (and American jobs) than Atlas-Copco’s.
Stuart
Can we credit TTI for Milwaukee’s success, or Milwaukee Tool’s leaders and decision-makers, with Steven Richman now at the helm of all of TTI as CEO?
Luke
Stuart, thanks for helping clear this up for everyone. It’s wild to see people so furiously argue with straight facts. I didn’t realize your average reader was so damn terrified of China.
Andy
Right? I’m not sure if it’s scary or entertaining how scared done people are
Jason
I’ve often wondered why they don’t just dual list. Plenty of companies do, IIRC Alibaba was trying to get listed on NYSE as a secondary.
Andy
I’m going to go ahead and call this the most entertaining post of the year. At least so far.
Chris
Milwaukee Tool is American based in terms of its operational footprint, history, and brand identity, but it is not American owned. It is a foreign owned subsidiary. It might have US based leadership, R&D, marketing, and manufacturing facilities in several states including Mississippi, Wisconsin, and South Carolina. Be ownership is by Techtronic Industries (TTI), a Hong Kong-based parent company.
ChipBoundary
No, it is owned by China, because all companies in China are owned and controlled by the government. If a government official comes into a Chinese company, even a publicly traded one, and tells them to do or change something then that is exactly what they do. No questions, no appeals, no hesitations. That’s how China works. All companies are the government, pure and simple. That is the facts.
Now, my problem with Chinese products begins and ends with Internet connected products. Outside of that, I do not care. I’m a disabled veteran, as patriotic as they come, and I’m even born and raised in Wisconsin. Milwaukee are the best power tools, period. Anybody that argues otherwise is delusional.
I use other brands as they are what I can afford at various times, but the few Milwaukees I have and have used, are second to none. Every union millwright I’ve ever known is exclusively Milwaukee. Are other tools good? Absolutely. Are they better? No.
Lou
I have been using Milwaukee tools for 45 years in the plumbing industry and nothing compares to Milwaukee BUT you point out Its a China owned Company whats to stop them from putting Chinese Nationals at the USA headquarters in Milwaukee and firing all the Americans also the dollars made also have to go back to the Corporate headquarters. Honda has factories here and hire Americans but they are in Japan. How is our stock market benefiting
Stuart
Hypothetically speaking, there are many companies that could do something like that. Realistically, it’d be akin to killing the golden goose and would never happen with Milwaukee, even if there were paths for it to be technically possible, which I don’t see.
Kerry
One thing to look at, where does Milwaukee/TTI pay income taxes on their profits? Do their income taxes go to USA or Hong Kong? That would be a critical way to determine whether they’re American or Chinese, at a practical level
Tim Moskal
The parent company is based in China. It is not owned by the Chinese government, and it is a publicly traded company. But you cant get around the fact that it is a Chinese company (headquartered in China). Milwaukee itself is American, but the owners are undeniably Chinese. Whether that matters to you is a personnel question.
zchris87v
I haven’t read every comment, but some Milwaukee tools are made by TTI. It’s just contract production, and I don’t believe TTI has involvement in the R&D, else they’d show up at the annual tool sale at the TTI HQ (a few miles from me, luckily) where pre-release and freight damage pallet tools are sold at absolutely bonkers discounts (I paid $3 each for a ridgid diamond file and a ryobi 5 in 1 pressure washer nozzle, $15 and $30, respectively, if purchased off the shelf)