US General Electric Corporation, world's largest company in terms of market value, intends to increase operations on the Romanian energy market. GE is currently considering projects on the domestic market that are estimated to some $90 million, Iulian Iancu, Economy and Trade Ministry state secretary says.
General Electric and the national electricity carrier Transelectrica on Tuesday signed a memorandum of understanding on the upgrade of eleven 220/110 kV electrical stations, a project expected to cost about $22 million.
"We feel Romania has a very dynamic infrastructure market, and General Electric will be looking for further co-operation opportunities on projects in the Romanian energy sector, " Martin Ansell, GE executive on Tuesday said.
"We saw energy as one of the interesting fields, like transports or medical equipment. We have almost all our divisions present here, from plastic, lamps, handling equipment, aircraft engines. We also own stake in Banc Post. As for the energy sector, we are considering the rehabilitation of thermoelectric plants, hydro projects, as well as wind energy projects like that in Constanta," Dan Ionescu, GE general manager for SE Europe said. He added the American company was buying $50 million's worth in products from Romania every year.
Ferdinando Beccalli, GE Europe president was saying in Bucharest last fall that the group's strategy had lately targeted boosting the medical equipment, aerospace and energy business, with consumer finance and real estate likely to follow. GE makes aircraft components in Romania through a joint venture established with Turbomecanica.
General Electric is the most complex company in the world, with operations spanning from aircraft, electrical power equipment, insurance, electricity, consumer goods, funding or plastic industry.
Its most advanced projects in Romania are those conducted with Transelectrica.
"The funding of the project to upgrade the 11 stations will be obtained by Transelectrica from a long-term loan with no governmental or banking guarantees, as General Electric has secured US Eximbank's guarantee," Jean Constantinescu, Transelectrica CEO said.
General Electric had previously won the tender for rehabilitating another three Transelectrica stations in 2002 and signed a memorandum of understanding for upgrading the 400 kV station servicing the Cernavoda nuclear plant last October.
adrian.mirsanu@zf.ro
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