In 2013, in a global deal valued at $3.3 billion, GE bought all the group’s operations, including the $140 million plant of Romania.
“Last year, we operated exports of $70 million, but this year we expect a level of $110 million. The takeover of Lufkin plant contributes the most to this increase,” says Colteanu.
Lufkin officially opened the plant of Ploiesti in mid-2013, with $28 million of the total $140-million investment coming as aid from the Romanian state. At that moment, the company expected to reach revenue of $60 million in the first year.
“Lufkin was among GE’s suppliers, hence integration is simpler. In Romania, we now have 360 people, including the service center, which operates in three shifts to send oil pumps to Russia, the Middle East or Indonesia. We will not increase our headcount in 2014, but Lufkin’s business is following an upward trend,” added Colteanu.
According to Finance Ministry data, Lufkin posted revenue of EUR25 million and losses of almost EUR8 million in Romania last year.
From Romania, GE also exports engine parts for the airline industry. “Unison Engine Components (UEC) plant, the former Turbomecanica Combustor Products (TMCP), became a unit of GE Aviation in the wake of a several million dollar investment program and manufactures aircraft engine parts for the world’s major aircraft producers,” said Colteanu.
The plant reached revenue of EUR25 million last year, after five years of constant growth. The management’s plan to keep the same pace for the coming years is based on a bet Boeing and Airbus will expand their Asian fleets.
Another GE Romanian unit that wins contracts abroad is GE Inspection & Life Extension Services (I&LES), a provider of test and monitoring services in the energy industry. Its team is made up of 24 Romanian engineers.
GE official chose not to disclose the level of GE’s revenue in Romania for 2013, only specifying the group has around 600 employees in Romania. In 2011, he said the area made up of Romania, Bulgaria and the Republic of Moldova would bring $1 billion in revenue in two years’ time.
“Our expectations were not confirmed. However, things have started moving in the right direction. All GE units are in the battlefield in Romania,”says Colteanu, with energy and medical equipment generating the biggest sales.
General Electric is one of the most powerful suppliers of equipment for the Romanian energy industry. The problem is that at this moment green energy investments have almost dried up after the modification of the support scheme for this field. Moreover, large investors such as Italy’s Enel or ENI decided to exit Romania.
“We will see further mergers, investors go one direction or another, but I strongly believe there will be highly valuable opportunities for infrastructure development,” says Colteanu.
(English version by Catalina Apostoiu)