On December 25, Wolong Electric Group Co., Ltd. issued an announcement announcing its acquisition of US General Electric's small industrial motor business for US$142 million.
GE continues to "slim" plan
The acquisition mainly involves the design, development, manufacturing, distribution and sales scope of low voltage and TEFC medium voltage motors below GE1750 horsepower (hereinafter referred to as SIM). The assets mainly include GE Industrial Motors Mexico Co., Ltd. (GEINDUSTRIAL MOTORSMEXICO, S.deR 100% of the shares of .L.deC.V.), 100% of GE Motors Services S.deR.L.deC.V, and 13 other entities related to assets and employees related to the business.
It is reported that GESIM has more than 130 years of history in motor technology. It has first-class manufacturing technologies for horizontal motors, vertical motors, and special motors. It possesses advanced management skills, modern technology and equipment, and a sound North American sales network.
US General Electric Company, which had a lower-than-expected result, intends to continue to “downsizingâ€. In August, the newly appointed CEO John Flannery continued to cut costs and sell business units through various means to increase company profits. JohnFlannery said, "GE is only concerned about the three major business: energy, aviation and medical equipment, will shrink the global structure of GE. The future of GE will be a more focused industrial enterprises."
Founded in 1892, GE is a large multinational corporation in the United States. Jack Welch has been in charge of the group since the 1980s. The company’s main performance indicators have maintained double-digit growth, and its annual revenue has increased from US$25 billion to 1005. Billion U.S. dollars, net profits rose from 1.5 billion U.S. dollars to 9 billion U.S. dollars, and the group's business continued to expand, involving lighting, mechanical equipment, materials, industrial electronics, finance, medical care, aerospace, and petroleum. However, the "9.11" terrorist attack in 2001 and the global financial crisis in 2008 had affected General Electric, core businesses such as electricity and oil and gas were sluggish, and company revenues were slowing down.
Wolong Electric wants to compete in the global top three
This Wolong Electric not only acquired SIM, but also signed a trademark license agreement with GE. Wolong will use the SIM window to sell the company's products to the American market under the GE brand, expand its SIM sales channel, and sell its key SIM products to the Chinese and European markets, thus forming a 1+1>2 industry collaboration model.
In recent years, Wolong has continued to focus on the core business of motor manufacturing and implemented an endogenous epitaxial two-wheel drive development model. In 2011, it acquired more than 100 million Euros from ATB Group, the largest electric motor manufacturer in Austria. In 2014, it acquired the Italian SIR, an industrial robot integrated application manufacturer. 89% of the shares of the joint-stock company; in 2015, acquired 80% of the world's largest vibration motor manufacturer, OLI, for 57,110,000 Euros; at the same time, they successively acquired Qingjiang Motor, Zhangqiu Haier Motor, Nanyang Explosion-proof Motor, and Anshan Rongxin of the domestic United States. And many other motor manufacturers.
This Wolong Electric not only acquired SIM, but also signed a trademark license agreement with GE. Wolong will use the SIM window to sell the company's products to the American market under the GE brand, expand its SIM sales channel, and sell its key SIM products to the Chinese and European markets, thus forming a 1+1>2 industry collaboration model.
In recent years, Wolong Electric has become one of the fastest-growing brands in the field of industrial motors in the global market.
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