Mar 12, 2024 - Business

GE Aerospace invests millions ahead of April spinoff

A General Electric logo on the engine of a passenger aircraft at the 2023 Dubai Air Show. Photo: Christopher Pike/Bloomberg via Getty Images

A General Electric logo on the engine of a passenger aircraft at the 2023 Dubai Air Show. Photo: Christopher Pike/Bloomberg via Getty Images

Aviation engine giant GE Aerospace is investing approximately $650 million in various facilities worldwide, with the lion's share going to its U.S. plants and suppliers.

Why it matters: It's a piece of a broader push by all sorts of manufacturers to bolster their domestic operations and supply chain.

By the numbers: About $450 million is going toward upgrades at 22 GE Aerospace sites in 14 states, the company says.

  • That includes $54 million for 3D printing tech in Auburn, Alabama; $30 million for military engine assembly and testing in Lynn, Massachusetts; $46 million for four North Carolina commercial airline engine plants and more.
  • It's also investing $100 million in domestic suppliers, and another $100 million in foreign sites.

Zoom in: GE Aerospace is looking to bring on over 1,000 new workers nationwide alongside this new spending.

The big picture: The investments come as the aviation world has been reeling from engine issues that, for airlines, have ranged from a headache to an existential threat despite booming travel demand.

  • Engine makers like GE are also working on next-gen propulsion tech to help the aviation sector reach its ambitious zero-emissions goals.

What they're saying: GE Aerospace is "consequential and right in the middle of this," Mike Kauffman, GE Aerospace vice president, supply chains, tells Axios.

  • "And that requires investment, both in our technology as we bring forward new, more fuel efficient power plants ... as well as a need to invest in manufacturing."

What's next: An upcoming spinoff will leave GE Aerospace as an independent entity, the last in a series of moves ending an era for what was once America's most powerful corporate conglomerate.

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