by 
FAIRFIELD, Conn. — General Electric Company (NYSE: GE), the world’s premier technology and infrastructure company, plans to sign five agreements with Chinese partners this week, totaling more than $2 billion in revenue for GE, the nation’s second-largest manufacturing exporter.
The five joint ventures, partnerships and orders in strategic sectors such as clean energy, aviation and rail transportation are expected to generate more than $1 billion in exports from the U.S. and create or support jobs in both countries, including more than 4,500 U.S. jobs.
”These multi-sector infrastructure-improvement deals will help strengthen the critically important U.S.-China bilateral economic relationship, expand commerce and increase employment in both the U.S. and China,” said GE Vice Chairman John Rice. “We feel confident about this relationship and are encouraged by the commitment both governments are demonstrating to working together to advance common interests. This week’s announcements reflect the potential of continued and expanded U.S.-China cooperation.”
The energy, aviation and rail deals capitalize on GE’s advanced technologies to create solutions for customers. The deals include:
• A joint venture between GE Energy and Shenhua Group Corporation signed on Tuesday to develop coal gasification technologies in China, key to commercial-scale deployment of cleaner coal solutions. This collaboration is expected to generate more than $150 million in revenues over five years and $100 million of U.S. exports in services, R&D and licensing. It will also support job creation in the United States and China, including hundreds of jobs in Houston, Greenville, SC; and Schenectady, NY.
• A collaborative agreement between GE Energy and China Huadian Corporation to develop distributed energy combined heat and power (DECHP) projects, which are expected to become the most efficient natural gas solutions for China. GE forecasts at least 50 gas-turbine generator sets being sold and installed in China in the next five years, resulting in $500 million of revenue for the partnership and $350 million in U.S. gas turbine exports from Cincinnati, Houston, Colorado and Oregon. This will support more than 2,100 jobs throughout GE’s domestic U.S. supply chain.
• A joint venture between GE Aviation and Aviation Industry Corporation of China (AVIC) to develop and market the new generation of avionics systems with an immediate priority on supporting development of China’s first home-grown big passenger jet. The joint venture will result in $300 million in exports from Michigan, Florida and Ohio and support at least 300 high-tech jobs in each of the United States and China.
• A Letter of Intent signed by GE Transportation with the Ministry of Railways (MOR) to provide $350 million worth of U.S.-built locomotives, locomotive sub-assembly kits, service support and signaling systems for China’s railway upgrade. The export order could support 2,000 U.S. jobs.
• A Letter of Intent signed by GE Transportation with the MOR to reaffirm both parties’ intent to collaborate on High-Speed Rail (HSR) and electric rail opportunities in North America. The partnership represents a joint investment of approximately $50 million with the potential to support 250 U.S. jobs by 2012 for the first phase of the agreement.
These agreements build on a larger-scale commitment GE has already made last November when GE announced plans to invest more than $2 billion in China through 2012 to expand the company’s R&D and innovation capabilities and create new local partnerships. Additionally, GE has been selected as one of 10 founding U.S. companies to participate in a new U.S.-China public-private partnership on healthcare, which was also launched during President Hu’s visit and aims to bolster bilateral cooperation advancing technology in and increasing accessibility to healthcare services across China.
{complink 8019|General Electric Co.}
Apply has been tremendously changed the whole industries from bringing in new markets and indirectly affected the whole supply chain. With Cook moving on to take the leadership role, I am excited to see more creative moves that Apple will make. Different partnerships will bring in different surprises!
I think it would be a challenge for Cook to perform in Steve Job's absence. The outcome of his performance may decide whether he is really able to step into Job's shoes on a permanent basis. If not, Apply may have to look for another successor to Steve Jobs.
Apart from this, it may be interesting to see how Cook handles the added responsibility of managing the supply chain as well as day-to-day responsibilities as the acting CEO.
“Their valuable supply-demand insight, creative problem-solving skills, financial business acumen, and responsibility for millions — or billions, in many cases — of dollars of critical materials and inventory should come with a C-level title”
I totally agree with you on this. The existing skill sets give them extra insight and help them take a better decision. Most agree Cook is a better choice but the only question remains is, is he as good as Steve ?
Cook and Jobs have different skill sets that complement each other very well. So it is hard to answer your question, “Will Cook be as good as Jobs?”
Steve brings in his visionary thinking and his way of not taking no for an answer. When he believes in his own idea, he won't back down and insists that his employees stick it to his way. Cook oversses the internal operations and manage it very well to make sure that Steve's idea is executed at a timely and lower cost options. So while Cook can manage that, we don't know if he has the capability to forsee the market demand for the future. What will be the next big thing that will provide Apple the revenue stream like the way it is now?
i agree with hwong that Cook and Job are different as Job has shown his power as a tech visionary and has brought Apple to the number 1 position. I have no doubt in my mind about the managerial qualities of Cook as he has shown in the past that he can deliver in Job's abscence so there is no problem in short term for Apple.
I think that its only time that will tell whether Cook can keep the growth engine of Apple running.
Cook and Jobs work together and they have different skill set. Steve Jobs is on leave and will continue making top-level decisions. As a net result there might be no change in Apple ability to continue success. But if Jobs would have to stop his work it would change Apple totally. As I can see it Apple could remain at the top, but not as dynamic as under Jobs.
Thanks, everyone, for your comments. Agreed, Cook is not Jobs, and Jobs is not Cook. And, I'll give a double nod to the fact that they each bring different, but complimentary, skills to the table. But, the question “Will Cook be as good as Jobs?” isn't really what has my head spinning.
Regardless of how well Apple fares or falters during whatever transitions come in the near future, the bigger questions are:
– Are the skills being developed and nutured by supply chain professionals strong enough to lead Fortune 500 companies?
– Will we be seeing more Cook-like executives coming up the ranks in the next few years?
– What specific supply chain skills would be most valuable in a CEO capacity (either here at Apple or anywhere in the high tech industry)?
– Which skills are still missing?
What do you think?
Jennifer,
I knew Mr. Cook had been at the helm of Apple during Jobs previous absence, but was not familiar with the rest of his background – thank you for providing the additional information. If he and Steve Jobs are as astute as I think, they have cultivated an evironment for innovation that encourages others within the company to step up and provide new ideas and technology.
In my opinion the Supply Chain Professionals are the heart of an organization, who are in action 24 hours of the day and keep the pace with the everchanging demands and deadlines. But a technology company like Apple needs a stronger brain which keeps on planning new streategies, new innovations all the time while the companies production machine is run by the Supply Chain professionals. So maintaining status-quo is one thing and taking the company to another height is another!
Jennifer thank you for clarification with specific questions. How one can assess skills needed to develop and nurture supply chain? Maybe we can look at the best examples in the industry and see what these people brought to the table. Why Steve Jobs is so good? Who else is there and what kind of style he/she has?
A very good insight in the article. Someone with supply chain background is leading Apple is really extraordinary but when he has experience in senior positions of HP,COMPAQ and IBM, it becomes easy to understand. The supply chain responsibility looks very simple from far but I agree they are the ones or make or break it. Imagine everything is ready but critical part in BOM is not in store. I have always recognized and appreciated the efforts of good buyers and supply chain executives.
@Parser: The questions you pose about how to assess skills, develop them beyond supply chain functions, and replicate/expand them throughout an organization or even the industry get right to the core of the matter. I know years ago a number of universities beefed up their cirriculum and began offering masters degrees in various supply chain areas, and organizations offered community outreach and continuing education classes and seminars. I'm not sure what's become of them, but I'd like hear how what the outcomes have been and how companies internally are identifying, nuturing and rewarding people with superior supply chain skills and business savvy.
There is one thing that the supply chain at Apple could not do.
The answer is the white iPhone 4. It was originally advertised, then postponed and nobody talks about anymore, even Verizon.
Jennifer;
I second your motion for Cook to lead Apple when Job leaves. His bio is remarkable and his track record is enviable!