GE Aviation's Presence in China Continues to Grow
ZHUHAI, China -- GE Aviation continues to increase its presence in China, with close to 2,000 GE and CFM56* engines now in service. An additional 1,000 GE and CFM engines are on order.
"GE Aviation has seen significant increases in engine orders in the region over the last five years to support China's growing aviation segment," said Roger Seager, vice president and general manager of Commercial Aircraft Programs in China. "Our Chinese operators have been extremely pleased with the performance, reliability and durability of the GE and CFM products, and we remain committed to supporting our customers in this region."
The best-selling aircraft in China are the Airbus A320 and Boeing 737 families, which are powered by the CFM56 engines. GE's GEnx engines have been very popular with customers in the region, with orders for 44 787 Boeing Dreamliners with GEnx engines. GE's GE90, CF6 and CF34 engines are also flying with many carriers in the region.
GE is working with Commercial Aircraft Corporation of China (COMAC) on the new ARJ21 aircraft, powered by GE's CF34-10A engine. COMAC has form orders for 85 ARJ21s and sees a market for up to 850 ARJ21s in 20 years, which represents a potential to GE of more than $4 bullion in engine revenues.
As the GE and CFM engine fleets continue to grow in the region, GE Aviation has been very active in training technicians from Chinese airlines and cargo companies on the engine technology and line maintenance needs. By the end of 2008, more than 500 flight-line technicians and propulsion engineers from about 20 Chinese operators will receive training on GE's CF34, GE90, CF6 and GEnx engines as well as CFM56 engines. Training classes are held at GE's Customer Technical Education Center (CTEC) in Cincinnati, Ohio and at the Aero Engine Maintenance Training Center in Guanghan, China, which is supported by GE and Snecma training departments.
GE's customer support offerings include the China Operations Center (CHOC) in Shanghai. The CHOC, which celebrated its two-year anniversary in August, provides 24-hour, seven-day-a-week customer and product support to more than 35 customers in the region. Staffed with highly trained employees who have a wealth of technical expertise, the center has handled more than 1,100 cases this year.
GE Aviation also has been actively increasing its sourcing efforts for jet engine components in China. "Our suppliers in China have demonstrated their commitment to high-quality workmanship," said Seager. "As a result, we focused on strengthening our relationship with key suppliers in the region and increased our sourcing efforts." This year, GE Aviation's direct sourcing efforts will reach $365 million, which is a 20 percent increase over last year.
GE started doing business in China as early as 1906 and was considered one of the most active foreign companies in the country at the time. In 1908, the first GE light plant was built in Shenyang. Today, the relationship encompasses advanced R&D, including: a new facility in Shanghai; joint ventures in high technology industries such as medical systems, plastics and lighting products; and aircraft engine maintenance facilities, training, and component manufacturing.
GE has 27 manufacturing facilities throughout China and employs more than 12,100 people in China.
GE Aviation, an operating unit of General Electric Company (NYSE: GE), is a world-leading provider of commercial and military jet engines and components as well as integrated digital, electric power, and mechanical systems for aircraft. GE Aviation also has a global service network to support these offerings.
*CFM is a registered trademark of CFM International, a 50/50 joint company between Snecma and GE.