General Electric Company’s (GE) advanced gas turbine technology has been chosen by the Russian power generation company TGK-9, an affiliate of Integrated Energy Systems (IES), for a combined-cycle plant to be used to provide heat and electricity to the residing population of Berezniki, an industrial city in Russia’s Urals Federal District. IES is Russia’s largest private power supply and gas distribution company.
The government of Russiais undertaking initiatives to update its energy infrastructure and fulfill the rising power demand in the country. This project provides a positive strength to the government’s initiative.
General Electric will be providing for the combined-cycle project two Frame 6FA gas turbine and associated generators plus technical assistance, on-site training and performance testing. The project aims at providing new power supply of 220 megawatts for the region, to be distributed as per the agreement between the Russian Ministry of Energy and IES. General Electric’s gas turbines are believed to provide long-term reliability and high performance.
General Electric has one of the best infrastructure franchises worldwide with solid organic growth rates, exposure to favorable secular trends and a large installed base supporting a growing annuity-like service business. Infrastructure businesses of the company are facilitating to build energy, health, transportation and technology infrastructure of the new century.
GE Healthcare has expertise in medical imaging and information technologies, medical diagnostics, patient monitoring systems, disease research, drug discovery and biopharmaceutical manufacturing technologies.
General Electric, however, operates in a highly competitive climate, characterized by changing technology that requires continuing research and development. The company remains focused on product leadership, expanding its core technologies, and creating a lower cost position. However, the company’s global expansion is subject to economic and political risks pertaining to diverse operating geographies.
Operating in more than 100 countries globally and employing about 300,000 people worldwide, General Electric Co. is a diversified infrastructure, finance and media company. Major competitors of General Electric are Koninklijke Philips Electronics NV (PHG) and Siemens AG (SI).
General Electric holds a Zacks #2 Rank (short-term Buy recommendation) over the next one-to-three months.
GENL ELECTRIC (GE): Free Stock Analysis Report
KONINKLIJKE PHL (PHG): Free Stock Analysis Report
SIEMENS AG-ADR (SI): Free Stock Analysis Report
Zacks Investment Research
