GE's $1.42 Billion Sale Of Small Industrial Motor Business

- Dec 03, 2018-

GE continues to "slim down" plan

The acquisition mainly involves the design, development, manufacturing, distribution and sales of low voltage and TEFC medium voltage motors below GE1750 (hereinafter referred to as SIM). The assets mainly include 100% equity of GE Industrial Motors Mexico Co., Ltd., GE Motor. Service Shares) 100% equity and 13 other entities involved in assets and employees related to the business.

It is reported that GESIM has more than 130 years of experience in motor professional technology. It has first-class horizontal motor, vertical motor, special motor and other manufacturing technologies. It has advanced management level, modern technology and equipment, and a sound sales network in North America.

The lower-than-expected US General Electric Company intends to continue to “slim down”. In August, John Flannery, the newly appointed CEO, has been cutting costs and selling business units through various means to increase the company's profits. John Flannery said, "GE is now focusing on three major businesses: energy, aerospace and medical equipment, which will shrink GE's global structure. The future of GE will be a more focused industrial enterprise."

Founded in 1892, General Electric is a large multinational corporation in the United States. Since the 1980s, Jack Welch has been in charge of the group. The company's main performance indicators have maintained double-digit growth, and annual revenue has increased from $25 billion to 1005. Billion dollars, net profit increased from 1.5 billion US dollars to 9 billion US dollars, the Group's business continues to expand, involving lighting, mechanical equipment, materials, industrial electronics, finance, medical, aerospace, petroleum and other fields. However, the "9.11" terrorist attacks in 2001 and the global financial crisis in 2008 affected General Electric, and the core businesses such as electricity and oil and gas were sluggish, and the company's revenue slowed down.

Wolong Electric wants to fight for the top three in the world

The Wolong Electric not only acquired SIM, but also signed a trademark license agreement with GE. Wolong will use the SIM window to sell the company's products to the American market under the GE brand. At the same time, it will expand the SIM sales channel and sell SIM key products to China and Europe, thus forming a 1+1>2 industrial collaboration model.

In recent years, Wolong has continued to focus on the core business of motor manufacturing, implementing the endogenous epitaxial two-wheel drive development model. In 2011, it acquired the largest motor manufacturer ATB Group in Austria for more than 100 million euros; in 2014, it acquired the Italian robot integrated application manufacturer SIR. 89% of the shares of the company; in 2015, acquired 80% of the world's largest vibration motor manufacturer OLI company for 57.11 million euros; at the same time, it has acquired the domestic beauty of Qingjiang Motor, Zhangqiu Haier motor, Nanyang explosion-proof motor, Anshan Rongxin And many other motor manufacturers.

The Wolong Electric not only acquired SIM, but also signed a trademark license agreement with GE. Wolong will use the SIM window to sell the company's products to the American market under the GE brand. At the same time, it will expand the SIM sales channel and sell SIM key products to China and Europe, thus forming a 1+1>2 industrial collaboration model.

In recent years, Wolong Electric has become one of the fastest growing brands in the global industrial motor field with the rapid development of globalization.



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