General Electric Co. (GE) said it plans to sign five agreements with Chinese partners this week that are expected to generate more than $1 billion in U.S. exports and create or support more than 4,500 U.S. jobs.
The announcement came the same day President Barack Obama formally welcomed Chinese President Hu Jintao to the White House, embarking on a summit that will help redefine the relationship between the countries. Meanwhile, GE has had a renewed focus on industrial businesses of late, following poor performance at its finance unit in the wake of the credit crisis.
It noted it had agreed to a joint venture with China Huadian Corp. to develop gas power generators. The venture is seen generating $500 million in revenue over the next five years.
It pointed to a Shanghai-based venture with Aviation Industry Corp. of China to develop and market avionics systems. The deal involves an unusually high level of integration with a Chinese company, but GE is hoping it will help it compete with major players like Honeywell International Inc. (HON) and Rockwell Collins Inc. (COL).
A venture with Shenhua Group Corp. to develop coal gasification technologies in China is expected to generate more than $150 million in revenue over five years.
The conglomerate noted letters of intent with China's Ministry of Railways to provide $350 million worth of U.S.-built locomotives and other gear for China's railway upgrade and to collaborate on high-speed rail and electric rail opportunities in North America.
Shares recently traded at $18.36, down 1.3%, as the broader market sagged under the weight of disappointing earnings reports.
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