General Electric Company (NYSE:GE), China XD partnership sets digital energy sales sailing

Posted by Steve Raasch August 28, 2013 0 Comment 982 views

General Electric Company (NYSE:GE) announced that its partnership with China XD will help it double the sales of various power-transmission services and products that are part of its digital energy business, and take it to $4B on an annual basis. GE has bought $552.2M (3.38 Billion yuan) worth of 15% stake in the Chinese power equipment maker.

According to the statement, the deal reached completion 15 months after it was first announced. The two companies have also agreed upon forming a joint venture via which grid-automation equipment will be sold in China.

Expansion plans

Jeffrey Immelt, the GE CEO has vowed to expand businesses into the emerging markets like China and also expand the company’s profit-share that has been derived from its industrial businesses. There is also a great amount of scope to upgrade the aging transmission infrastructure in Europe and the United States said GE’s power transmission business’ general manager, Bob Turko.

In a telephone interview he said that this particular deal aligns very well with the very heartening growth dynamics that are evident in this segment. This market segment is a massive one and it helps in building a bigger-base for the company’s industrial businesses.

Tuesday’s trading

In Tuesday’s trading session, GE stock dipped by 1.82%. The opening price of the shares was $23.36 which touched an intraday high of $23.39 and closed at $23.18. Over 0.11M shares were traded in Tuesday’s session and the average volume of shares traded over 30 days was 32.36M. The company has a market cap of $236.06 million.

GE is a diversified-technology and financial-services company. The services and products that the company offers range from power generation, aircraft engines, and water-processing to consumer and business financing as well as numerous industrial products.

About Steve Raasch

Steve Raasch is a breaking news reporter for GDP insider. During his nearly two decades of editorial experience, Steve has covered a variety of topics including small business, health, personal finance, advertising, workplace issues and consumer behavior. Steve is very passionate about his work. Steve earned a master of arts degree in international relations from the Johns Hopkins University School of Advanced International Studies in Washington.

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