GENERAL ELECTRIC
New structure sees plastics as “cash cow” / Start-up of Cartagena PC plant in late 2004
As part of a reorganisation of US conglomerate General Electric (GE, Fairfield, Connecticut / USA), the previously independent GE Plastics (GEP, European HQ: NL-4600 Bergen op Zoom; www.geplastics.com) will be merged on 1 January 2004 with GE Specialty Materials into a new unit to be called GE Advanced Materials. The new strategy was announced by CEO Jeffrey Immelt at an investors conference on 4 December 2003. Simultaneously, employees were informed in a letter. CEO of the new entity will be current GEP chief executive John Krenicki.
The new organisation divides the GE portfolio into “Growth Engines” – segments with above-average potential – and “Cash Generators” – more mature businesses with high cash flow and comparatively lower margins. As innovative fields GE sees energy, transportation, infrastructure, healthcare, media (NBC-Universal) and finance. These will receive the lion´s share of the group capital spending budget in future. The consumer products segment, including traditional electro-technical products for industry and the materials businesses, are characterised as “cash cows”. Merging these is expected to save personnel and thus reduce costs. GE also plans to divest some product segments, including parts of its insurance business and speciality chemicals.
Meanwhile, GEP has confirmed that the long-delayed second polycarbonate (“Lexan”) production line at Cartagena, Spain, is due to start up at the end of 2004 or the beginning of 2005. The facility will have a capacity of 130,000 t/y, bringing total output capability in Spain to 300,000 t/y. In 2007, GEP will complete a new plant for its “Ultem” polyetherimide-based high performance polymers at Cartagena.
• e-Service:
Immelt presentation at 4 December 2003 investors conference with details on new GE strategy as PDF document (1,169 KB)
The new organisation divides the GE portfolio into “Growth Engines” – segments with above-average potential – and “Cash Generators” – more mature businesses with high cash flow and comparatively lower margins. As innovative fields GE sees energy, transportation, infrastructure, healthcare, media (NBC-Universal) and finance. These will receive the lion´s share of the group capital spending budget in future. The consumer products segment, including traditional electro-technical products for industry and the materials businesses, are characterised as “cash cows”. Merging these is expected to save personnel and thus reduce costs. GE also plans to divest some product segments, including parts of its insurance business and speciality chemicals.
Meanwhile, GEP has confirmed that the long-delayed second polycarbonate (“Lexan”) production line at Cartagena, Spain, is due to start up at the end of 2004 or the beginning of 2005. The facility will have a capacity of 130,000 t/y, bringing total output capability in Spain to 300,000 t/y. In 2007, GEP will complete a new plant for its “Ultem” polyetherimide-based high performance polymers at Cartagena.
• e-Service:
Immelt presentation at 4 December 2003 investors conference with details on new GE strategy as PDF document (1,169 KB)
18.12.2003 Plasteurope.com [13757]
Published on 18.12.2003