General Electric Co. said it plans to invest $500 million to expand its operations in Brazil and to accelerate technology partnerships with leading Brazilian companies spanning multiple industries.
The announcement was made at a news conference in Rio de Janeiro, which was chosen as the home for GE's newest multi-disciplinary research and development Center.
The $100 million Brazil Global Research Center, which will be located on the Ilha do Bom Jesus peninsula, will employ 200 researchers and engineers. Work at the center will focus on advanced technologies for the oil and gas, renewable energy, mining, rail and aviation industries, according to the company.
"For 90 years we have formed strong relationships throughout Brazil with many trusted partners," said Ferdinando Beccalli-Falco, president and CEO of GE International. "As we look ahead, we see an even brighter future that requires aggressive investment, which will result in more innovation coming to market. Brazil offers GE some of the most sophisticated and aggressive customers in the world. The Brazil Global Research Center will be a hub for deepening relationships that will result in growth for GE, its customers and the country."
GE has had a presence in Brazil since 1919 and today employs more than 6,000 people in the country. The company has operations throughout the country, including Sao Paulo, Minas Gerais and Rio de Janeiro.
In addition to the new research center, GE said it plans to invest $400 million over the next three years in technology, training, new product development, new plant and equipment and human capital, including:
- $200 million for new wind turbine and aero-derivative product developments and increased plant capacity for GE's Energy and Oil & Gas business.
- Capacity expansions and new production facilities for GE's Healthcare and Transportation businesses, both in Contagem, Minas Gerais; GE Aviation in Petrpolis, Rio de Janeiro State and GE's Lighting businesses in a yet-to-be-determined location, totaling $200 million.
- $50 million for training and development and the creation of a Global Learning Center to be co-located with the new Brazil GE Global Research Center.
- The creation of 1,000 new GE jobs, spanning all of the company's businesses.
- Development of new suppliers and partners for more robust, localized production capabilities.
Following finalization of negotiations and architectural design work, construction of the Brazil GE Global Research Center complex should begin in mid-2011 and is targeted for completion in late 2012, according to GE.