Driven by the local market, Poland will be key to GE's European supply chain
- From the very beginning of its operations in Poland, GE has concentrated on developing a robust supply chain out of Poland and over the past 25 years has certified over 5,000 direct suppliers out of the country.
- On average, GE annually sources over 400 mln USD out of Poland. 2.2 bln USD from Polish suppliers over the last five years.
- Through its sourcing approach, GE is fully supporting the Polish government’s policy to localize the Polish energy market, e.g. 70% of the entire equipment for the Opole power plant project has been sourced out of Poland.
The General Electric Central and Eastern Europe Manufacturing Leadership Meeting took place in Wroclaw from May 31st to June 2nd. The conference focused on manufacturing and supply chain issues in four major countries in the CEE Region: Poland, Czech Republic, Hungary and Romania. It was no coincidence that Poland was chosen to host this meeting. From the very beginning of its operations in Poland, GE has invested in a Polish supply chain and right now the company is fully committed to globally leveraging expertise and supply out of Poland.
For global comapnies such as General Electric, an effective and lean supply chain ecosystem is one of the pillars of a sucessfull business. GE buys directly from over 30,000 suppliers from multiple locations around the world and the value of such transactions amounts to 40 bln USD. For the CEE Region this number is close to 2 bln USD annually with the focus on growth. With GE sales increasing in the region and Poland itself, the need for more regional supppliers is also growing and creating opportunities to localize more content.
For the 25 years of its presence in Poland, GE has focused on developing a robust supply chain and during this period of time has certified over 5,000 direct suppliers out of the country. On average, GE annually sources over 400 mln USD out of Poland with 2.2 bln USD from Polish suppliers over the last five years alone.
“Through our sourcing approach, GE is fully supporting the Polish government’s policy to localize the Polish energy market. Every second MW power used in Poland is based on equipment produced by GE in Poland. We are also fully committed to globally leveraging expertise and supply out of Poland. At present over 320 medium- and large-sized steam and gas turbines installed all over the world were manufactured in Polish facilities. Every job at our facilities in Poland generates another four in the local supply chain,” comments Peter Stracar, President & CEO, General Electric Central & Eastern Europe.
GE is deeply local in Poland. Over the years the company has heavily invested (670 mln PLN since 1992) in its operations here, developing local factories, centres of excellence and R&D hubs, all while building strong, valuable and beneficial ties with local suppliers. Based on the strong technical and engineering footprint that GE built up at the Engineering Design Center (EDC) in Warsaw (2,000 engineers), the company is fully committed to further developing and driving the skills and capacities of its Polish supplier base.
“Suppliers in Poland are capable of delivering the right technology at a reasonable cost and upon a properly organized delivery process. A good example is the Opole power plant project where 70% of the entire equipment has been sourced out of Poland,” says Melissa Twiningdavis, VP Supply Chain and Sourcing for GE in Europe.
“Based on Polish sourcing, GE is committed to supporting the national policy of Poland to localize the energy market and to help the country to meet and exceed the strictest global environmental regulations in its current endeavors to create a modern and secure energy infrastructure,” says Slawomir Zygowski, Country Sales Director GE Steam Power System business. “We are the only technology provider in the energy sector with local manufacturing, design, engineering and R&D capabilities - cooperating in R&D with ENERGA and Polish technical universities on cleaner coal technologies, supporting advocacy for cleaner coal solutions and regulatory eligibility.”
GE is the world’s Digital Industrial Company, transforming industry with software-defined machines and solutions that are connected, responsive and predictive. GE is organized around a global exchange of knowledge, the “GE Store”, through which each business shares and accesses the same technology, markets, structure and intellectual expertise. Each invention further fuels innovation and application across our industrial sectors. With its people, services, technology and scale, GE delivers better outcomes for customers by speaking the language of industry.
GE in Poland
GE entered the Polish market in 1992. It currently employs 7,300 people in the industrial sector. LM Wind Power is joining the GE Group in Poland that owns, among other things, three plants specializing in the manufacture of electric products (in Kłodzko, Łódź and Bielsko-Biała), two facilities of GE Aviation (Dzierżoniów and Bielsko-Biała) and three GE power plants (a turbine manufacturing plant and foundry in Elbląg and a generator manufacturing plant in Wrocław). The EDC (Engineering Design Centre) has also been operating in Warsaw for 16 years. It was founded as a partnership between GE and the Institute of Aviation. Since 1992 the company has invested USD 670 million in Poland and its annual expenditure on research and development is about USD 100 million.
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