BEIJING--(BUSINESS WIRE)--May 29, 2006--GE today marked 100 years doing business in China, signing a Memorandum of Understanding (MOU) with China's National Development and Reform Commission (NDRC) to expand cooperation in the development of advanced environmental technologies that will support continued, sustainable growth in China over many decades.
"From a small trading business in the early 1900s, to $5 billion in revenues in China today, GE's strong commitment to China is getting even stronger," said GE Chairman and CEO Jeff Immelt, who signed the agreement in Beijing with the NDRC. "Advanced energy and environmental technologies bridge our company and this country to a horizon of immense potential growth."
The MOU stems from the growing synergy between China's needs and GE technology, explicitly allowing for GE to provide advanced technologies to China including: Integrated Gasification Combined Cycle (IGCC) or "Cleaner Coal"; Wind Energy Optimization; Regional Aviation Expansion; Advanced Locomotive Development; Desalination; and Lighting, among others.
As a continuous commitment to China, GE will also invest up to $50 million in "eco-related" research & development funds at its China Technology Center in Shanghai over the next five years and GE would also provide management and leadership training to up to 2,500 Chinese managers and officials over the same period.
"As the pieces come together, we expect this relationship to grow over time for the mutual benefit of our Chinese customers and our global investors," Immelt concluded.
The MOU is a practical application of GE's ecomagination initiative - a global growth strategy where advanced technologies help answer modern challenges, support customers, and increasingly enhance the bottom line. This focus is particularly appropriate in China, due to its significant energy requirements and serious challenges regarding availability of natural resources.
As an extension to the cooperation with NDRC, GE and Tsinghua University signed a Research Agreement today, under which the University will provide research to GE's Ecomagination initiatives in China and around the world. This is the first cleaner technology collaboration in China for both GE and Tsinghua, and the unique Corporate-University agreement will bolster GE's technical base.
Immelt cited a number of ecomagination products already in use in China or coming soon, including:
-- China Mainline Evolution locomotive - tailored for the China market for massive cargo loads over long distances with great efficiency, this locomotive's 16-cylinder engine also reduces emissions by 28%. The Chinese Ministry of Rail has ordered 300 of the 6,000 horsepower locomotives.
-- "Cleaner Coal" IGCC technology - Many plants in China are already using GE's gasification technology - one of two key technologies that come together in an Integrated Gasification Combined Cycle plant - to economically use coal for the production of chemicals. In an IGCC plant, gasification converts coal into a fuel called syngas, which is used in a combined cycle system to produce power, resulting in significantly reduced emissions compared to traditional coal-fired power plants.
-- GEnx aircraft engines - which will power the Boeing 787, 747-8, and Airbus A350 - is up to 15% more fuel efficient, 30% quieter, and has significantly lower emissions than its predecessor.
-- Wind Energy - With a total of 700 megawatts of wind turbines to be installed in China, GE is a leading player in China's renewable energy market.
-- Jenbacher engines that use methane gas from coal mines and landfills. Engines currently operate on coal-mine gas pumped from the active Xieqiao mine in Huainan, with electricity being fed into the regional power grid. The growth potential for such applications is considerable as China is the world's largest coal producer.
-- Silwet* Super Spreaders - GE Advanced Materials is partnering with the Ministry of Agriculture to support local farmers in the agricultural use of silicones-based Silwet Super Spreaders that help reduce heavy water demand and chemical runoff into soil and groundwater that can be a result of crop protection activities.
-- NXT* silanes - The NXT silane family of breakthrough coupling agents from GE - Advanced Materials is used to improve manufacturing efficiency and reduce emissions in the production and use of fuel efficient silica tires.
-- Plastics - Noryl Wire Coating: made of easily recycled polymers with no halogens and fewer heavy-metal pigments, meeting stringent environmental standards.
-- Consumer & Industrial - GE's partnership in the roadway lighting control solution allows 20+% energy savings during low traffic flow hours in the 33 kilometer Dong Hai cross-sea bridge in eastern China. GE's compact florescent lamps are also the lighting of choice in the 500-room Chongqing JW Marriot Hotel, making the rooms 20% brighter and resulting in 80% energy savings.
-- Water - Advanced membrane technologies enable water recycling and purification to be tailored to the customers' needs for diverse industries from beverages to manufacturing to pharmaceuticals.
"China is home to some of our finest research capabilities, our most creative and dedicated employees, and the customers who will benefit from the strength and promise of both," said Lorraine Bolsinger, GE Vice President of ecomagination. "We look forward to the next phase of our work in China, fueled by the power of ecomagination, the commitment of our customers and partners, and the strength of our employees."
GE's ecomagination report is available at www.ge.com/ecoreport. To encourage readers to save paper and read the report online, GE is planting a tree at its Peebles, Ohio (USA) jet engine testing facility for each of the first 2,500 downloads of the report. These trees will help offset the generation of carbon dioxide associated with growth at GE's engine test facility.
As part of its commitment to keep the public informed on ecomagination, GE is encouraging feedback on the report through [email protected]. Additionally, GE will hold a webcast on its citizenship efforts and ecomagination on June 1 at 10:30 AM DST. The web cast will be hosted by Lorraine Bolsinger, Senior Vice President & General Counsel Brackett Denniston, Vice President of Corporate Citizenship Bob Corcoran and Legal Counsel and Director of EHS Operations Ann Condon. (U.S. dial-in: 800-329-9097 / International: 617-614-4929; Participant passcode: 27947044)
GE (NYSE: GE) is a diversified technology, media and financial services company dedicated to creating products that make life better. From aircraft engines and power generation to financial services, medical imaging, television programming, and plastics, GE operates in more than 100 countries and employs more than 300,000 people worldwide. For more information, visit the company's Web site at http://www.ge.com.
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