GE has signed a series of "Company to Country" agreements aimed at promoting collaboration between GE and Chinese public and private sector aviation, energy, and transportation organizations on clean technologies.
The announcements, which were made as part of GE's "Clean Technology Week in China" activities, included the formation of two joint ventures — in avionics and locomotive engines; and the parties' agreements to explore future cleaner coal gasification and high-speed rail opportunities.
The agreements aim to encourage active collaboration to advance clean technologies that address both long-term strategic challenges and economic opportunities for GE and China. Over time, these initiatives are expected to create and safeguard thousands of jobs in both countries.
Jeff Immelt, the chairman and CEO of GE stated that these agreements share common themes — rapid growth potential, clean technologies and job creation.
Immelt added that GE expected these investments and commitments to yield long-term benefits with new global sales being realized as a direct result of these collaborations and thus safeguarding and growing U.S. jobs while supporting Chinese growth for GE businesses and the Chinese aviation, energy and transportation industries.
Spanning GE's industrial portfolio, the announcements include initiatives in the following areas.
Avionics joint venture: GE Aviation and AVIC Systems will create a global avionics business to develop and market integrated systems for commercial aircraft customers. The joint venture, to be headquartered in Beijing, China, plans to offer fully integrated, open architecture avionics and services for future civil aircraft programs. The joint venture may create more than 200 U.S. jobs.
Cleaner coal energy: GE Energy and Shenhua Group Corporation have agreed to a framework for an industrial coal gasification joint venture. GE and Shenhua would conduct research and development on new cleaner coal technologies to improve cost and performance of commercial scale gasification and integrated gasification combined cycle solutions, and jointly pursue the deployment of commercial scale IGCC plants with carbon capture and sequestration. To further progress "cleaner coal" IGCC technology in China, the US Trade and Development Agency announced its intention to fund the initial steps toward a plant in China based on GE's technology.
Advancing high-speed rail technologies: GE and the China's Ministry of Railways are considering advancing partnership opportunities to pursue high-speed rail projects in the United States. While GE is the world leader in diesel-electric locomotive technology, GE does not currently manufacture locomotives for high-speed rail travel. A successful partnership with the ministry would allow GE to more effectively compete against European and Japanese companies for high-speed rail related opportunities and would create in the near future about 150 high technology jobs in the U.S. and sustain approximately 3,500 U.S. jobs over time — at least 80% of the content would be sourced from, and all final assembly will take place in the U.S.
Transportation locomotive assemblies order: CSR Qishuyan Locomotive has. agreed to purchase 300 Evolution Series locomotive assemblies. The agreement helps to sustain nearly 1,200 clean-technology jobs in the U.S.
Engine joint venture: GE Transportation and CSR Qishuyan will form a joint venture company to develop, build and service GE's Evolution Series locomotive diesel engines in China, where there is significant opportunity for modernization. Of the 12,000 diesel locomotives in China, only a small fraction use advanced technology. Also, as demand for the ecomagination certified technology increases around the world, the new company would jointly seek future commercial opportunities.
The announcements came as GE's "Company to Country" strategy continues to bear fruit. In 2006 GE signed a memorandum of understanding with China's National Development and Reform Commission to explore broad partnerships with the Chinese government and state-owned companies, especially on GE's green initiative "ecomagination." The areas of cooperation with NDRC cover energy, transportation, aviation, water, lighting and other key infrastructure sectors.
