RSS   Newsletter   Contact   Advertise with us

$250 million Doosan deal will boost revenue at General Electric

Staff Writer | August 17, 2016
General Electric's purchase of part of Doosan Engineering & Construction of Korea will sharply boost the U.S. manufacturer's revenues from energy assets acquired last year from France's Alstom, a senior GE executive said.
General Electric
Engineering   New equipment orders in power division at GE
GE's purchase of Doosan's heat recovery steam generator (HRSG) unit for $250 million provides critical engineering and manufacturing capacity that GE needs as sales increase in the businesses it acquired from Alstom, Joe Mastrangelo, CEO of GE's gas power systems business, said in an interview.

New equipment orders in GE's power division, excluding Alstom, fell 11 percent in the second quarter.

But since the Alstom deal closed last November, GE has added 30 orders for heat recovery steam generators to its backlog, Mastrangelo said, noting that the company typically sold 14 per year before the acquisition.

GE acquired the Alstom energy business for $9.5 billion last year. Alstom SA is now focused on its transport business, such as building trains.

GE CEO Jeff Immelt told investors in July he expects those energy assets acquired from Alstom to deliver 5 cents a share in profits for the year. GE's Alstom business had $7.5 billion in orders during the first half of the year, he said.

An HRSG is part of a combined cycle plant and provides about one third of its power.