General Electric Company (NYSE:GE) aims for sky with Avio Aero
General Electric Company (NYSE:GE) has completed the Avio Aero acquisition. This is Avio S.P.A’s aviation business that is located in Turin, Italy. It provides combustion technology, aviation-automation systems, low-pressure turbines, mechanical transmission systems. It also manufactures low-pressure turbines that are use in civil and military aircraft. The company will now be renamed Avio Areo- GE Aviation business. It will be the central point of excellence for the GE Group’s entire low-pressure turbines and mechanical transmissions.
GE acquired the business for $4.3B, but the space unit was not part of the acquisition. Avio Aero will now operate as the GE Aviation business-unit. The unit will continue operating out of its headquarters in Turin. With this acquisition, GE will be able to further its expertise and participation in all the areas. Company officials say that General Electric Company (NYSE:GE) will also be pursuing opportunities for the new unit in oil, power generation and marine products.
Avio Areo specializes in transmission systems and thus the company will have growth-opportunities in numerous industrial sectors. Avio Aero runs its Italian plants in Turin, Brindisi and Pomigliano d’Arco. Of the company’s 4,700 employees, 4,000 are in Italy. The company also has various plants in Brazil, Poland and china. The GE, Avio Aero alliance goes back 30 years and the latter has been a strategic supplier to GE since then.
The turbo-engine experts
The Italian company has a large amount of content on GE engines. It manufactures large GenX and GE90 turbofan engines that are used in commercial aircraft. The company also manufactures smaller turbo-shaft engines that are used in military and civil helicopters. These top-tier products are among the best-selling in the aviation industry.
The expectation is that they will provide a steady, long-term, profitable revenue flow for the company. General Electric Company (NYSE:GE), which is the GE Aviation parent company, already has a very strong presence in Italy.