The largest US investor helps developing the Central European and Hungarian digital economy
Budapest, October 7. 2016 - General Electric (GE), as a strategic partner of the Hungarian government, continues to invest and develop its industrial footprint in Hungary. With an investment of approximately 30 million USD, GE now opens one of its six global Digital Hubs in Budapest. Adding to its current workforce of 10.000+ employees in Hungary, GE’s new Digital Hub will create 400 highly skilled expert positions by the end of 2017 in the field of industrial internet solutions. The Hub will be responsible for software development, business processes and application resiliency, building and running infrastructure and offering access to big data solutions. The Hub was inaugurated in the presence of Péter Szijjártó, Minister of Foreign Affairs and Trade and Colleen Bell, Ambassador of the United States. GE aims to become one of the largest digital software companies of the world by 2020.
The key in GE’s transformation is Predix, the world’s first and only industrial-grade cloud platform built for the industrial world, launched by GE in February 2016. Predix is leveraging on big data analytics and helps GE customers across the power generation, power distribution, healthcare, automotive, chemical, transportation, oil and gas and manufacturing industries to increase efficiency of their high value assets. To assist its customers in using and developing applications on the platform GE opened Digital Hubs, operating already in Detroit, New Orleans, Glen Allan, Bangalore and Riyadh with Budapest now added as the latest member of the hub network.
Digitalisation, often called the 4th industrial revolution, is the more integrated network of machines, people and data also makes GE to change: the 124 year-old company is on its way to transform from a traditional industrial company - manufacturing machines and equipment - to a digital industrial company, thus increasing its revenue out of the Digital Industry by 6 billion to 15 billion USD annually by 2020.
GE Digital already supports 1.000 IT Hungarian experts from the various GE businesses operating across the country, but the Digital Hub will create additional 400 new, highly skilled expert positions by the end of 2017. Initially provided to other GE operations around the globe and in Hungary, and later to global key players, services of the Hub will include software development, business processes and application resiliency, building and running infrastructure and offering access to big data solutions.
Increasing productivity has a huge potential. According to GE, by saving only 1% of total expenditure via efficiency and productivity increase, Europe can add €2.8 trillion per year to the GDP by 2030, which is equivalent to a quarter of the current size of the Euro area economy.
“The industrial internet represents a never before seen potential for the Hungarian and Central European economy. The region has the talent, knowledge and infrastructure to actively participate in the productivity revolution and the digitization of industry must be at the core of this mission” - said Peter Stracar, CEO for GE CEE. “GE is committed to put Central Europe in the driver’s seat to develop the building blocks for the Industrial Internet that will help companies in the region to turn information into insights and insights into outcomes” - he added.
Currently the contribution of the Hungarian digital industry to the GDP is around 20%, one of the highest in the CEE region, but still below the European and North-American average which is at 30-35%.
GE, which has been operating in Hungary for over 27 years, is not only the biggest US investor, but also the largest Hungarian company running 12 factories, 5 research & development centers and 3 business service centers in 13 cities and employing more than 10.000 people.
In the past 2 years GE has invested approximately 120 million USD into its Hungarian operations. In its 12 local factories the company manufactures state of the art healthcare, water, oil & gas, aviation, lighting as well as power generation solutions. The company’s Global Operations Center in Budapest employing 1700+ is an integral part of GE’s global strategy driving service innovation and simplification in its operations. It provides integrated shared services to GE businesses across Europe and beyond. Building on this strong local footprint and 1.400 qualified local suppliers, GE is also well positioned to become the supplier of the turbine island of the Paks II. nuclear power plant.
GE is the biggest exporter in Hungary, exporting 99% of its total production to foreign markets. In 2015 the company’s export, mainly to the US and EU countries, exceeded 16 billion USD.
“The opening of the Digital Hub demonstrates GE’s commitment to Hungary, considered as one of our main industrial bases in Europe” - said Joerg Bauer, President of GE Hungary. “The Digital Hub is not only a financial investment, but rather a knowledge center, therefore we aim to strengthen our cooperation with Hungarian higher education institutions” - added the President.
In the field of education GE already cooperates with the University of Szeged, the Semmelweis University of Medical Sciences, University of Debrecen and the Pannon University in the field of clinical research & development. The company now aims to extend the scope of cooperation to technical and information technology education institutions as well.
Piskóti Attila / Tölgyi Krisztina
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GE (NYSE: GE) is the world’s Digital Industrial Company, transforming industry with software-defined machines and solutions that are connected, responsive and predictive. GE is organized around a global exchange of knowledge, the "GE Store," through which each business shares and accesses the same technology, markets, structure and intellect. Each invention further fuels innovation and application across our industrial sectors. With people, services, technology and scale, GE delivers better outcomes for customers by speaking the language of industry. www.ge.com