GE Expands Capabilities in Russia to Meet Customers’ Growing Energy Needs

GE Energy today held a groundbreaking ceremony to announce the start of construction for GE’s new Power Technology Center in the Kaluga Region of Russia, 180 kilometers southwest of Moscow. The technology center further expands GE’s in-country capabilities to deliver its products and services to customers across Russia and the Commonwealth of Independent States (CIS) that are pushing to modernize their energy assets.

“General Electric’s project in the Kaluga region is further proof of the fact that foreign business and regional authorities are able to work constructively and productively in modern Russia. The project is significant for us as an example of effective cooperation in the high-tech sphere,” said Anatoly Dmitrievich Artamonov, governor of the Kaluga Region.

GE signed the agreement to construct the technology center in March 2009 with the government of the Kaluga Region, the Kaluga Region Development Corporation and the administration of Kaluga City.

Today’s groundbreaking ceremony was attended by John Krenicki, GE vice chairman and president and CEO of GE Energy; Governor Artamonov; and other key representatives from the Russian government and the U.S. embassy.

GE’s initial investment in the Kaluga center is US$30 million, but that figure is expected to grow to $50 million by the time the facility is commissioned in late 2010.

“General Electric’s products are popular in many countries all over the world among customers who value quality, reliability, safety and comfort. We welcome in our region investors with such an excellent reputation,” said Governor Artamonov. “Despite a relatively small number of workers, the investment planned is more than 870 million rubles. It is very important, as this project will be the only center repairing GE power components in Russia. I want to wish them good luck. The company management can count on our support at all stages of the project implementation.”

“The establishment of the new Power Technology Center demonstrates our commitment to support and invest in the modernization of Russia’s energy infrastructure and their energy efficiency goals,” said Krenicki.