GE To Offer HA Gas Turbine Technology To Fortress In Ohio
Zacks Investment Research | Mar 07, 2019 07:39AM ET
General Electric Company’s (NYSE:GE) Power segment recently secured orders for its state-of-the-art HA — the largest and most efficient fleet of gas turbines in the world. Notably, the company entered into a deal with Fortress Transportation and Infrastructure Investors LLC (NYSE:FTAI) to provide its industry-leading 7HA.02 gas turbine technology for the latter’s Long Ridge Energy Generation LLC Project, based in Hannibal, OH.
Inside Story
Per the deal, General Electric will be responsible for offering its advanced 7HA.02 gas turbine technology at the 485-MW power plant project. In addition to the heavy-duty gas turbine, GE will supply one heat recovery generator and one GE steam turbine and generator. The deal also involves a multi-year services agreement between both the companies.
GE’s advanced HA gas turbine technology will bring greater flexibility and efficiency to the plant’s operations required for producing efficient and low-cost energy in Ohio. Notably, the plant’s construction is likely to be completed by November 2021, and it will cater to the requirements of reliable electricity for industrial customers, apart from creating new job opportunities.
Existing Business Scenario
General Electric intends to become more competent by focusing on core businesses. In this regard, the company intends to strengthen its Power business, which dented its performance over the past few quarters. It is looking to resolve the external and internal challenges through better inventory and material management, product development and delivery, as well as billings and collections.
Currently, the company has been focusing on a disciplined financial strategy to reduce leverage at both its industrial businesses as well as GE Capital. It is worth noting here that the company substantially completed $20 billion of asset sales planned for GE Industrial in 2018.
The Zacks Rank #3 (Hold) company’s share price has increased 29.9% in the past three months compared with 13.5% growth recorded by the Zacks Investment Research
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