GE to move gas engine production to Canada

• 8 years ago (2015-10-01)
• David Flin

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GE Power & Water has announced that it will cease production of large gas engines at Waukesha, Wisconsin in the USA, and transfer production to a new $265 million plant it will build in Canada. The specific location and start-up date for the new “Brilliant Factory” has not be revealed, but GE said that it would be completed within 20 months.

The new gas engine plant in Canada will result in 350 jobs in its first phase. In addition to producing gas engines, it will have back-up capacity to manufacture diesel engine components for GE Transportation.

GE’s Brilliant Factory concept involves production programmes using highly networked factory equipment and computers sharing information and production data in real time, adjusting operations as required.

The move to Canada comes on the heels of announcements that GE Aviation will relocate turboprop engine development to Europe, and GE Power Generation will be transferring 500-1000 gas turbine manufacturing jobs to France and China, and will establish a new centre of operations for heavy-duty gas turbines in France.

In each of GE’s recent announcements, it has said that the US Congress’s failure to reauthorise the US Export-Import Bank is responsible for the moves. As in the other announcements, GE said that this move of production to Canada is being made to allow it access to Canada’s export credit agency.

John Rice, Vice Chairman of GE, said: “We believe in American manufacturing, but our customers in many cases require ECA financing for us to bid on projects. Without it, we cannot compete, and our customers may be forced to select other providers.”