Apr 4th 2016 GE Expands High-Efficiency Capabilities with Completed Acquisition of Metem Corporation Including Metem's Hungarian Operation in Százhalombatta
- Purchase Expands GE In-House Capabilities to Provide Fully Integrated, Comprehensive Machining Solutions to Support Advanced, High Efficiency HA Technology
- Metem Expertise Creates Supply Chain Efficiencies
- GE Expects to Retain All Metem Employees and Facilities for Supply Chain Integration
- Metem’s Advanced STEM and EDM Manufacturing Facility in Százhalombatta to belong to GE Power Hungary Located in Veresegyház
VERESEGYHÁZ, HUNGARY-April 4, 2016-GE (NYSE: GE) today announced that it has completed the acquisition of Metem Corporation, a U.S.-based provider of precision cooling hole-manufacturing technologies that enable turbine engines to function more efficiently, saving costs, increasing operation time and reducing emissions. The acquisition includes Metem’s advanced STEM (Shaped Tube Electrolytic Machining) and EDM (Electro Discharge Machining) manufacturing facility - Metem Europe Ltd. - located in Százhalombatta. The acquisition was closed less than 120 days after GE first announced its intent to purchase in December.
“The Metem acquisition is another milestone in the history of GE’s partnership with Hungary, strengthening our common commitment to long-term growth and expanding our industrial footprint in the country. We’re excited to welcome Metem’s employees to GE, and we’re expecting a fast and seamless integration,” said Joerg Bauer, president of GE Hungary.
By bringing the Metem cooling hole-drilling capability in house, GE expects to realize supply chain efficiencies and reduce costs as it continues to strengthen its advanced, high-efficiency portfolio. GE’s HA gas turbines can achieve more than 62 percent efficiency. Achieving that level of efficiency subjects heavy-duty gas turbines to very high temperatures during operations, making metals weaker. With heavy-duty gas turbine blades operating under high temperatures and experiencing significant centrifugal stresses, turbine blade cooling is an important component of GE’s next generation of advanced gas turbines.
“Gas turbines coupled with services are the core of GE Power, and Metem’s acquisition will help achieve synergies by improving the overall cost base of products and enhancing the GE Store capabilities for customers,” said Mike Chanatry, VP of gas power systems supply chain, GE Power.
GE and Metem have had a very strong relationship since the 1970s, driven by Metem’s record of innovation and technology development and the strength of its workforce. At the time of the acquisition close, GE was Metem’s largest customer. This acquisition is strategic for GE Power, as demand for advanced manufacturing technologies significantly increases as products evolve.
Chanatry says that GE expects to build out the capabilities and capacity of the Metem network. Metem’s entire workforce of approximately 270 employees, as well as the company’s facilities and resources in New Jersey, Pennsylvania and Hungary, will be integrated into GE over the next six to 12 months. Metem’s headquarters in Parsippany, New Jersey, will be transformed into a Center of Excellence for GE Power.
Metem Corporation is a specialized global supplier of machining and assembled turbine super-alloy components in the power generation and aerospace industries. Over the past 50 years, Metem has grown into one of the largest high-volume, non-conventional machining companies in the world by emphasizing innovation, advanced technologies and operational excellence.
In 2005, Metem set up an advanced STEM and EDM manufacturing facility in Százhalombatta, Hungary - Metem Europe Kft. (MEU) - to drill cooling holes on 50 hertz engines and provide regionally competitive service parts.