Aimed to expand its industrial business base, General Electric extends partnership with APR Energy
General Electric Company (NYSE:GE) recently announced in partnership with APR Energy to renew their strategic partnership to keep providing fast-track power services through mobile turbine technology. The current move will support General Electric’s long-term strategy to strengthen its industrial segment aimed to boost its operating revenues in future.
As part of the extended partnership deal, APR Energy will be exclusively allowed to offer its rental provider services of GE mobile gas turbines under 50MW. Furthermore, APR will also acquire new GE TM2500+ mobile turbines through which the company will also upgrade its turbine fleet. Collectively, GE and APR Energy will share new customer leads that will benefit both companies in the long term.
Analysts related to the industry believe that through the acquisition of new power turbine, APR Energy will be able to strengthen its position as mobile gas turbine power energy provider. Through the acquisition of new power turbine, the company will be able to increase its power production capacity to more than 2GW.
The current deal would benefit General Electric’s Power and Water segment, specifically the one that manufactures gas turbines. The conglomerate has been investing in the unit to introduce more efficient power turbines amid increasing requirement around the world. Earlier in 2016, General Electric also signed a deal with Egypt to provide gas turbines that increased its total backlog value for the year.
Originally, the partnership between General Electric and APR Energy was first signed in October 2013; since then, the two companies have been working closely to increase their industrial business base. General Electric, on the other hand, announced its long-term strategy to sell most of its GE Capital financial assets to increase its presence in industrial segment. Since then, the conglomerate has sold around $200 billion worth of GE Capital financial assets around the globe.