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GE to invest in India’s rail and Africa

By on 14/10/2015
GE-evolution-locomotive

The company General Electric Co. is looking to make further investments in India’s rail, the company said in a statement.

The announcement comes ahead of company chairman and chief executive officer (CEO) Jeff Immelt’s visit to India later this month. Investments in the country have doubled in the past five years to $3 billion, the company said.

“India is a growth engine for Asia, and we see huge potential for the country in the manufacturing space. Infrastructure is a key driver of India’s growth. We are keen to invest much more in India and in projects to boost its infrastructure in sectors such as rail, power and healthcare. These efforts will have a ripple effect on the overall economic growth in India and beyond,” Immelt said in a statement on Friday.

GE to invest in India’s rail

The company said as part of its Make in India initiative, it has increased the levels of local sourcing by 20% for locomotives, 30% for power equipment and 15% for aviation. “India may soon become a global centre of excellence for certain components,” the company said.

GE is also looking to form a public-private partnership in Bihar, in line with the existing partnerships it has with seven states for healthcare. Earlier this year, the company announced a $200 million investment in its multi-modal manufacturing facility in Pune, Maharashtra.

India’s rail and Africa

The company also announced recently that it will invest $2 billion in facility development, skills training, and sustainability initiatives across Africa by 2019.

Through partnerships and technology, GE is poised to help increase access, reliability, and affordability of core infrastructure throughout the continent. Africa has emerged as the most promising growth region for GE. Total GE revenues in Africa in 2013 were $5.2 billion and in the past year, GE has won more than $8.3 billion in orders across Africa.

GE will focus its investment in Africa in three strategic areas: building infrastructure; delivering localized solutions to customers; and capacity building, by providing skills training and growing supply chain development in local communities.

New GE commitments in railways in Africa include:

GE’s “Country-to-Company” agreement with the Government of Nigeria, which encourages the development of infrastructure projects and the transfer of skills and technology, will be renewed for another five years.

-GE will supply approximately $1 billion in railway and power equipment to Angola, under a bilateral agreement signed this week between the Export-Import Bank and Angola’s Ministry of Finance to finance infrastructure development projects in the country.

GE South Africa Technologies has committed to supply Transnet with 233 locomotives, as well as develop a Supplier Development Fund with IDC and IFC that fosters the growth of subject matter experts throughout the GE supply chain in Africa. The partnership with Transnet has created hundreds of skilled jobs on both continents. With this new order, GE will be delivering 436 new locomotives operating in South Africa by 2017.

-GE received orders in Mozambique for 100 locomotives between 2012 and 2014. In early 2014, GE Transportation delivered the first four of 10 C30ACi locomotives that were ordered in 2012 to CFM (Portos e Caminhos de Ferro de Moçambique). GE will provide services and skills training in Mozambique. For this order, the engines are made in Pennsylvania and the locomotives are assembled at Transnet Engineering plant in South Africa.

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