General Electric Company (NYSE:GE) has announced that it managed to ink three fresh deals in China with a total value of $3.5 billion amid President Donald Trump’s visit to on a trade agenda.
General Electric revealed that it managed to strike the three deals with Chinese partners in the aviation and engine category of business. The company revealed that the three contracts that it managed to secure were signed in the presence of Chinese President Xi Jinping and President Trump. The deals were signed during a ceremony which was held to promote trade between China and the U.S. It was also part of Trump’s agenda to encourage and facilitate business dealings worth billions for companies in both countries as part of strengthening their relationships as well as their economic strength.
GE managed to secure a $1.1 billion order to supply 80 Leap-1B engines that will be fitted in 40 Boeing 737 MAX airplanes that belong to ICBC Leasing, the leasing subsidiary of the Industrial and Commercial Bank of China Ltd. The company also managed to secure a framework agreement to supply gas turbines as well as other components to China Datang Group for projects in China. The deal was valued at $1 billion. The third deal was an engine repair deal for GEnx-1B engines that GE signed with Juneyao Airlines Co Ltd.
"China's opening up drive is also encouraging companies like GE to participate in the development of markets outside China,” stated GE Vice Chairman John Rice who had also accompanied President Trump and other executives from U.S companies in the pursuit of trade deals in China.
The new contracts will be exciting additions to the U.S company’s impressive portfolio of partnerships. GE has so far been working together with more than 30 construction, procurement, and engineering firms in China and about 70 others in other markets in Europe, Africa, Asia and the Middle East.
China provides a significant part of GE’s global business and as such the revenue contribution from China is also great. However, the company is still looking to secure more opportunities. Rice stated that new chapters and opportunities are always coming up and that it is important to keep an eye on the changes taking place in the industry so as to respond appropriately.
GE stock closed the latest trading session on Wednesday at $20.12.
