Capping a week in which GE announced a new highly-efficient gas turbine and $1 billion in North American turbine orders, an expansion of its presence in Germany and the launch of a cancer campaign to improve care for millions through its integrated technology portfolio and new partners, the company finalized energy and healthcare joint venture agreements today in Russia that will help secure GE’s position in one of the world’s fastest growing markets, create jobs in both the U.S. and Russia and could drive more than $10-$15 billion in sales. GE anticipates orders of energy-efficient, heavy-duty, gas-fired power generation turbines that would generate up to 5 gigawatts of power, as well as thousands of high-tech medical diagnostic units in Russia. GE’s Chairman and CEO Jeff Immelt signed the agreements at an event attended by Russian Prime Minister Vladimir Putin in Sochi, Russia.
It’s another example of American innovation and advanced technology winning customers in rapidly growing global markets, which helps support manufacturing jobs in the U.S. The healthcare agreement announced today, for example, will support 100 American jobs. “Our expansion in Russia reflects GE’s global approach to growth,” said Immelt. “It draws on leading-edge R&D, engineering and manufacturing expertise from GE centers throughout the world even as it meets needs and creates value in our customers’ home markets.”
The new joint ventures, with three leading Russian companies, will initiate the assembly of products in Russia using components manufactured in GE’s international facilities (20 percent of the components for CT machines, for example, are produced in the United States). Over time, and in keeping with GE’s requirements for quality, cost-effectiveness, design specifications and intellectual property protection, parts will be sourced from qualified Russian suppliers. GE will exercise operational control over the ventures and will hold a 50 percent stake in each one.
GE is no stranger to Russia: it began operations there in the early 20th century, supplying equipment and know-how to support the Soviet Union’s electrification and selling locomotives and oil and gas equipment. Today GE does business in Russia across multiple industries, employs over 2,700 Russians and reported 2010 revenues of U.S. $1.5 billion in the country.
