doing some due diligence on this '''GEAR BOX JV''' between GE and APWR
GE gearboxes to be made in China
By JIM MARTIN
Erie-based GE Transportation has landed a major contract to supply wind-turbine gearboxes.
There's no reason to believe, however, that order will have any effect on local employment.
The company announced Monday that it had signed two letters of intent -- one to supply A-Power Generation Systems with more than 900 2.7-megawatt wind turbine gearboxes; and one to establish a joint partnership with A-Power to establish an assembly plant to build those gearboxes in China.
The value of the deal was not revealed.
It's a move reminiscent of a growing list of others made recently as GE Transportation enters into partnerships to produce GE locomotives in other countries.
"GE's successful history of conducting business in China is based on our belief that we must operate as a local company," Tim Schweiker, president of GE Technology Infrastructure in China, said in a statement.
A-Power would seem to fit GE's needs as a partner.
The company, through its operating subsidiary Liaoning Gaoke Energy Co. Ltd., identifies itself as the largest provider of distributed power-generation systems in China.
GE Drivetrain Technologies will be the majority owner of the joint venture, which will operate under the name GE Transportation and build the gearboxes from parts made in China.
"It's a good-sized contract," said Stephan Koller, spokesman for GE Transportation. "Once we are up and running, we are going to strive for repeat orders."
GE Transportation Chief Executive Lorenzo Simonelli has stressed repeatedly the need to establish global partnerships that take advantage of local connections and lower-cost manufacturing.
Disclosure: Author is LONG on APWR