GE to Acquire Metem Corporation in Move to Simplify Operations and Increase Supply Chain Efficiency
- Purchase Would Expand GE in-House Capabilities to Provide Exceptionally Engineered, Fully Integrated, Comprehensive Machining Solutions
- Metem Expertise Would Allow GE to Grow Cooling Hole-Drilling Work
SCHENECTADY, N.Y.-December 28, 2015-GE (NYSE: GE) today announced that it has signed a purchase agreement to acquire 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.
Heavy-duty gas turbines are subject 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. To realize supply chain efficiencies and reduce costs, GE made the decision to bring cooling hole-drilling capability in-house by acquiring Metem.
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 world-class workforce. As a result, GE is Metem’s largest customer today. This acquisition is very strategic for GE Power, as demand for advanced manufacturing technologies significantly increases as products evolve. GE envisions building out the capabilities and capacity of the Metem network.
Until the transaction closes, the two companies will continue to operate as separate businesses, and Metem will continue to be managed by the existing leadership team. GE and Metem expect the deal to close in the first quarter of 2016.
“Gas turbines coupled with services are the core of GE Power. Our acquisition of Alstom’s power business has significantly improved our competitiveness, particularly in our technology leadership position and global presence. But we have not stopped there,” said Mike Chanatry, VP of Gas Power Systems Supply Chain. “In addition to adding to the GE Store capabilities, acquiring Metem would help achieve synergies by improving the overall cost base of products.”
Metem Corporation is a specialized global supplier of turbine super-alloy component machining for leading companies in the power generation and aerospace industries. Over the past 50 years, Metem has grown into one of the largest machining companies in the world by emphasizing innovation, advanced technologies, operational excellence, and continuous focus on strategic, long-term relationships with customers.
GE (NYSE: 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 intellect. Each invention further fuels innovation and application across our industrial sectors. With people, services, technology and scale, GE delivers better outcomes for customers by speaking the language of industry. www.ge.com
About GE Power
GE Power is a world leader in power generation with deep domain expertise to help customers deliver electricity from a wide spectrum of fuel sources. We are transforming the electricity industry with the digital power plant, the world’s largest and most efficient gas turbine, full balance of plant, upgrade and service solutions as well as our data-leveraging software. Our innovative technologies and digital offerings help make power more affordable, reliable, accessible and sustainable.