GE Pounces On Chinese Aerospace, Energy Markets
NEW YORK (AP) — General Electric Co. said Tuesday it is forming joint ventures with major Chinese groups that operate aerospace, energy and rail businesses.
GE, which currently runs 36 wholly owned or joint venture companies in China, did not disclose the value of the deals.
"These agreements share common themes — rapid growth potential, clean technologies and job creation," said General Electric Co. head Jeff Immelt.
GE Aviation and AVIC Systems will create a global avionics business, based in Beijing, to develop and market products for commercial aircraft customers.
GE Transportation will form a joint venture with CSR Qishuyan Locomotive Co. Ltd., a unit of China South Locomotive and Rolling Stock Corp. Ltd., to make locomotive diesel engines in China.
GE Transportation and China's Ministry of Railways also signed a memorandum of understanding to jointly pursue "partnership opportunities to pursue high-speed rail projects" in the U.S.
"A successful partnership with (China's Ministry of Railways) would allow GE to more effectively compete against European and Japanese companies for high-speed rail related opportunities," the company said.
In another deal, GE Energy and Shenhua Group Corp. agreed to a framework for an industrial coal gasification joint venture to research and develop cleaner coal technologies. The U.S. Trade and Development Agency will contribute funding for a plant in China based on GE technology.
Finally, CSR Qishuyan Locomotive Co., Ltd. agreed to buy 300 Evolution Series locomotive assemblies for an undisclosed price.