Uncategorized

General Electric Moving 500 US Jobs Overseas

GE Names Stephan Reimelt President, CEO of Power Conversion Business

GE (NYSE: GE) said it would send 500 jobs from the U.S. overseas due to the expiration of funding from the Ex-Im Bank.
 
The company said it planned to move 100 jobs from its Houston, Texas, facility to Hungary and China in 2016, along with jobs in South Carolina, Maine and New York to France as more orders are bid for its 50-Hz aeroderivative gas turbines. The move includes 100 people from the Houston facility that will take place in 2016.

Currently, GE is bidding on $11 billion of projects that require export financing, and the company has reached an agreement with the French export credit agency (COFACE) to provide a line of credit for global power projects.
 
The U.S. Ex-Im Bank allows foreign companies to borrow money to buy U.S.-made products. Congress did not authorize renewal and the bank stopped lending money July 1.
 
“Our customers rely on export credit agencies, like U.S. Ex-Im, to finance their critical power projects,” said Jeff Connelly, Vice President, Supply Chain, GE Power & Water. “While our preference is to continue producing power generation equipment in our best U.S. factories, without customer access to the U.S. Ex-Im Bank, we have no choice but to move our work to places that will offer export credit financing of these projects.”
 
GE customers often require guaranteed financing from an ECA in order to submit a bid. With no U.S. export financing available, GE must pursue non-U.S. options. Many of these ECAs have requirements similar to the U.S. Ex-Im Bank’s that production and jobs must be invested in-country to qualify for financing.