HindustanTimes.com

Friday, October 24, 2003

GE to make China global production hub

Indo-Asian News Service
Beijing, October 24

General Electric (GE) has announced it will make China its global production
centre with purchase and sales volumes in the country reaching 5 billion
yuan each by 2005, Xinhua news agency reported.

As part of its global strategy to enhance China's status, GE has established
an industrial park for medical systems in the Beijing Economic and
Technological Development Zone, which cost the group $26 million in direct
investment.

"It represents a landmark investment by GE in China," said Chen Zhi,
president of GE Medical Systems China.

China, together with Japan and India, has become GE's most important Asian
market, and is expected to become its largest market in 10 years.

The park, which covers medical equipment research and development,
manufacturing, sales and after-sales service, will take up a third of GE's
CT scanner equipment production, making China third only to the US and Japan
in CT scanner manufacturing.

GE is keen on enhancing its purchase and sales volumes as CEO Jeff Immelt
believes "China is the world's fastest-growing economy".

Immelt said GE was prepared to expand in China through three fundamental
business strategies, namely, stepping up localisation from production to
after-sales service to win customers, improving local manufacturing
facilities and caring more about cultivating a talent pool.

It is GE's objective, stressed Immelt, to make GE in China a localised
company and an important part of GE.

GE, the world's biggest industrial conglomerate with wide interests ranging
from finance and media to medical equipment and aircraft engines, reported
$1.5 billion in revenue in China, compared with $131.7 billion in its global
sales last year.


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