GE to Build World Class Gas Engine Facility in Canada
Canada gains and the U.S. loses under plans by GE Power & Water to relocate an engine facility to an undisclosed Canadian location. GE plans to stop building gas engines for compression, mechanical drive and power generation applications in Waukesha, Wisconsin and instead open a US$265 million state-of-the-art “Brilliant Factory” in Canada that will optimize efficiency and streamline production using data, analytics and software. The new facility will also have back-up capacity to manufacture diesel engine components. Expected to be operational in 20 months, it could expand over time and also support manufacturing requirements for other GE businesses.
GE will build the facility in Canada so that it can access additional support from Canada’s export credit agency, Export Development Canada (EDC). GE is currently bidding on $11 billion of projects that require export financing. While more than 60 other countries have export credit agencies (ECAs) that support domestic manufacturing for export, the US does not. GE has a long-standing relationship with EDC under which the company has participated in a number of global transactions.
In 2014, EDC facilitated exports and investments of approximately $100B CDN. The agency actively supports global expansion for manufacturers based in Canada, supporting over 7,000 customers in close to 200 countries last year.
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