Barely two days of searching, I found the answer myself!
Use the following eclipse update site: http://download.eclipse.org/sequoyah/updates/2.1/
Make sure you uncheck 'Group items by category' or you will not see any available packages!
Select the 'Sequoyah android Localization Editor' and install the package.
Right click on one of your 'strings.xml' file and select open with -> other -> 'Localization Files Editor'