Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.
+1 212 318 2000
Europe, Middle East, & Africa
+44 20 7330 7500
+65 6212 1000
General Electric Co. said Friday it has secured two separate deals in Russia that could generate between $10 billion and $15 billion in sales.
The agreements focus on the energy and health care industries. The energy deal allows GE to manufacture and sell natural gas turbines in the country. The health care deal clears GE to make and sell high-tech medical diagnostic equipment.
The products will be built in Russia, with GE running the operation. GE will start building a plant for its turbine operation later this year. It expects to build turbines with a total generating capacity of up to 5 gigawatts of power. Its new Russian energy business is a joint venture with Inter RAO UES, one of the country's largest power companies, and Russia's United Engine Corp.
On the health care side, GE said it will start making CT scanners and then expand to other types of diagnostic equipment. GE estimates Russia has a need for about 3,000 CT scanners. The country plans to spend more than $30 billion by 2014 on health care, according to GE. The health care business is a joint venture with Russian Technologies.
GE has been working in the country since the early 20th century. Its Russian operation, headquartered in Moscow, crosses a variety of fields including health care, transportation, aviation, electrical power, oil and gas, water treatment and financial services.
Shares of the Fairfield, Conn., company fell 12 cents to $15.96 in premarket trading.