Welcome to DU!
The truly grassroots left-of-center political community where regular people, not algorithms, drive the discussions and set the standards.
Join the community:
Create a free account
Support DU (and get rid of ads!):
Become a Star Member
Latest Breaking News
General Discussion
The DU Lounge
All Forums
Issue Forums
Culture Forums
Alliance Forums
Region Forums
Support Forums
Help & Search
General Electric's Power Business Faces Stiff Competition as Spinoff Looms
BUSINESS
General Electric’s Power Business Faces Stiff Competition as Spinoff Looms
Seeking to profit from the renewable-energy boom, the segment is described as the weakest of the three set to emerge from the conglomerate
By Jennifer Hiller and Georgi Kantchev
jennifer.hiller@wsj.com
https://twitter.com/georgikantchev
georgi.kantchev@wsj.com
Nov. 12, 2021 5:30 am ET
General Electric Co. aims to create a market-leading power company as the conglomerate breaks into three. But it faces stiff competition from rivals also repositioning their businesses to cash in on a global renewable-energy boom.
GE said this week that it plans to create a new stand-alone business it would spin off around 2024 that would combine its existing units that make wind turbines, turbines for traditional power plants and its digital businesses. Such a company would instantly become a major player in the power manufacturing space, positioned to prosper from an accelerating transition to cleaner energy sources in the midst of concern about climate change, while continuing to sell natural-gas turbines in much of the world.
GE’s power company would enter a crowded field that includes similar renewable businesses spun off by its German industrial rival, Siemens AG, and powerful Chinese players such as Xinjiang Goldwind Science & Technology Co. Only a few big winners will emerge from this ongoing contest for supremacy, analysts said.
“Globally, competition is definitely increasing, it’s a fight,” said Shashi Barla, principal analyst for global wind supply chain and technology at Wood Mackenzie, a research and consulting firm. He estimates that the top five players in wind turbines are going to dominate 75% of the global market by the end of the decade, with some smaller companies possibly going defunct or being absorbed by the bigger ones.
Turning around the power business has been a priority for GE Chief Executive Larry Culp, who is trying to overcome GE’s history of management missteps and costly acquisitions of turbine-making rivals that didn’t yield results. A 2015 takeover of the power assets of France’s Alstom SA resulted in a $22 billion charge three years later.
{snip}
—Thomas Gryta contributed to this article.
Write to Jennifer Hiller at jennifer.hiller@wsj.com and Georgi Kantchev at georgi.kantchev@wsj.com
General Electric’s Power Business Faces Stiff Competition as Spinoff Looms
Seeking to profit from the renewable-energy boom, the segment is described as the weakest of the three set to emerge from the conglomerate
By Jennifer Hiller and Georgi Kantchev
jennifer.hiller@wsj.com
https://twitter.com/georgikantchev
georgi.kantchev@wsj.com
Nov. 12, 2021 5:30 am ET
General Electric Co. aims to create a market-leading power company as the conglomerate breaks into three. But it faces stiff competition from rivals also repositioning their businesses to cash in on a global renewable-energy boom.
GE said this week that it plans to create a new stand-alone business it would spin off around 2024 that would combine its existing units that make wind turbines, turbines for traditional power plants and its digital businesses. Such a company would instantly become a major player in the power manufacturing space, positioned to prosper from an accelerating transition to cleaner energy sources in the midst of concern about climate change, while continuing to sell natural-gas turbines in much of the world.
GE’s power company would enter a crowded field that includes similar renewable businesses spun off by its German industrial rival, Siemens AG, and powerful Chinese players such as Xinjiang Goldwind Science & Technology Co. Only a few big winners will emerge from this ongoing contest for supremacy, analysts said.
“Globally, competition is definitely increasing, it’s a fight,” said Shashi Barla, principal analyst for global wind supply chain and technology at Wood Mackenzie, a research and consulting firm. He estimates that the top five players in wind turbines are going to dominate 75% of the global market by the end of the decade, with some smaller companies possibly going defunct or being absorbed by the bigger ones.
Turning around the power business has been a priority for GE Chief Executive Larry Culp, who is trying to overcome GE’s history of management missteps and costly acquisitions of turbine-making rivals that didn’t yield results. A 2015 takeover of the power assets of France’s Alstom SA resulted in a $22 billion charge three years later.
{snip}
—Thomas Gryta contributed to this article.
Write to Jennifer Hiller at jennifer.hiller@wsj.com and Georgi Kantchev at georgi.kantchev@wsj.com