GE's Invests More in China

General Electric (GE) continues to show its global power as it now begins to invest in China. William Driscoll Jr, vice-president of GE and general manager of GE Silicons, yesterday announced the firm's support for China and said GE considers the Chinese market vital to its Pacific business.

The announcement was made at the Waigaoqiao Free Trade Zone for the GE Toshiba Silicones Shanghai Co Ltd, a US$29 million venture.

"Silicones has a large application base and China has obviously one of the largest potential group of consumers in the world. For us, it's a great opportunity," Driscoll said.

The US$100 billion corporation already has 20 branch offices and 30 joint ventures or wholly-owned ventures in China. The total investment exceeds US$1.5 billion. They employ more than 6,000 people.

And the investment continues. GE has also started three other projects in Shanghai since last October. The GE Industrial Systems, GE Plastics, both of which are also located in Pudong's Waigaoqiao area, and GE Guangdian which produces switch gears are the big projects under way.

Charles McIntyre, president and chief executive officer (CEO) of GE China, said GE also signed a US$20 million lighting joint venture project in Xiamen, East China's Fujian Province, less than a month ago.

A GE official said it is a possibility that Jack Welch, CEO of GE, may have encouraged the push to all the projects after he attended the Fortune Global Forum here last September.

GE Toshiba Silicones Shanghai Co Ltd, owned 51 per cent by GE and 49 per cent by Toshiba, is expected to begin production in April next year.

The new plant will produce a wide range of high-quality silicone products to serve local markets such as construction, personal care and electrical and electronic industries.

Driscoll said it will help make GE a lead silicones-based product supplier in China rivaling with Dow Corning and Shin-Etsu. (China Daily)

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