GE Aviation to Create European Turboprop Center of Excellence to Pursue Non-U

The Vice Chairman insists the company has “no choice but to invest in non-U.S. manufacturing and move production to countries that support high-tech exports”.

Another 400 jobs could be created in France instead of factories in South Carolina, Maine and New York if the company wins projects it is bidding on. Since the U.S. Export Import Bank (Ex-Im) authorization expired July 1, GE has commenced talks with several foreign ECAs to secure financing for its customers. The move will enable support to international customers with financing through government-sponsored Export Credit Agencies (ECAs).

“We considered the U.S. and other global locations, but ultimately, with the uncertainty around EXIM, we had to rule out the United States”, Kennedy said.

GE customers often require guaranteed financing from an ECA in order to submit a bid.

In addition, GE research continues on a new 5,000 shp turboprop engine for the regional market that will leverage GE’s new GE38 turboshaft military helicopter engine (for the U.S. Marines’ CH53-K heavy lift helicopter), as well as technologies across GE’s broad military and commercial jet engine portfolio.

“This is what happens when Congress sits idly by while thousands of jobs are on the line”, said Republican Representative Stephen Fincher, who has led efforts to revive EXIM in the House of Representatives. Congressman Chris Gibson said he supports the Ex-Im Bank.

Rep. Joseph D. Courtney, D-Conn., a supporter of the Ex-Im Bank, said the refusal by Republicans to back the federal agency is taking a toll.

“It’s troubling that the head of President Obama’s Jobs Council is announcing GE is leaving Connecticut because the state’s taxes are too high and is choosing to send jobs overseas because U.S. taxpayer-provided subsidies are too low”, he said. GE has a 1-year high of $28.68 and a 1-year low of $19.37.

Mayor Gary McCarthy and the Anthony Jasenski, chairman of the Schenectady County Legislature, released a joint statement on the move, saying, “Today’s announcement by GE is a wake up call to Congress to get busy and reauthorize the Export-Import Bank before more jobs are lost”.

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