GE Drivetrain Technologies and Chongqing XinXing Gear Finalize Joint Venture, Launch Gear Business for Wind Turbine Industry

GE Drivetrain Technologies, a unit of GE Transportation, and Chongqing XinXing Fengneng Investment Co., Ltd. announced today the formation of a joint venture company to produce large diameter gears for the wind turbine industry.

Chongqing XinXing Gear Co., Ltd. builds on 16 years of gear manufacturing experience in the automotive and motorcycle industries through its subsidiary company, Chongqing Xinxing Fengneng Co., Ltd., while GE Drivetrain Technologies has provided drive train components to the wind turbine industry since 2004. Under the terms of the joint venture, Chongqing XinXing Fengneng will be the majority owner, and the gears will be produced in a new manufacturing facility in Chongqing, China.

A signing ceremony was held in Chongqing China with vice-mayor of Chongqing Huang Qishan and Tim Schweikert, President of GE Technology Infrastructure in China in attendance.

"As a supplier to some of the world’s leading automotive and motorcycle companies, Chongqing XinXing brings a world-class manufacturing mentality to the production of wind turbine gears,” said Tim Schweikert, President of GE Technology Infrastructure in China. "GE Transportation’s large diameter gear manufacturing expertise perfectly complements Chongqing XinXing’s proven high volume gear production capabilities.”

Added Prescott Logan, Business Leader for GE Drivetrain Technologies, "This partnership is a key building block in our larger strategy to grow our wind drive train business in China and Asia Pacific by integrating our gear manufacturing supply chain and ensuring a secure supply of high quality gears to our Shenyang-based gearbox assembly plant.”

The joint venture is an important investment for Chongqing XinXing, as it enables the company to participate in the burgeoning Chinese wind energy market. "We are pleased to enter this partnership with GE Transportation because of its renowned engineering expertise and global presence,” said Xingming Li, Chairman, Chongqing XinXing Fengneng Investment Co., Ltd. "This agreement is an exciting opportunity to expand our product line and customer base, and a great chance to upgrade our existing products and improve our management skills as we continue our proud tradition of manufacturing high precision gears.”

Initially, the new business will manufacture gears for GE Drivetrain Technologies’ wind turbine gearbox production facility in Shenyang, China. GE Drivetrain Technologies and A-Power Energy Systems announced the development of the facility as part of a joint venture agreement in January 2009.

This agreement signifies GE Drivetrain Technologies’ commitment to the development of a local Chinese supply chain and supports China’s initiative to increase wind energy output from one gigawatt in 2005 to 100 gigawatts by 2020.

With this agreement, GE Drivetrain Technologies continues to expand its offering to the wind industry. Earlier this year, the business announced the launch of a wind generator and control systems division to complement its existing gearbox business.

About GE Transportation

Established more than 100 years ago, GE Transportation, a unit of General Electric Company (NYSE: GE), is a global technology leader and supplier to the railroad, marine, drilling, mining and wind industries. GE provides freight and passenger locomotives, railway signaling and communications systems, information technology solutions, marine engines, motorized drive systems for mining trucks and drills, high-quality replacement parts and value added services. GE Transportation is headquartered in Erie, Pennsylvania, USA, and employs approximately 10,000 employees worldwide. For more information visit www.getransportation.com.

About Chongqing XinXing Gear Co., Ltd

Established in 1993, Chongqing XinXing supplies gears for automobile, motorcycle and general machinery with a current capacity of 85 million pieces per year and annual production value of US$73.5 million. Chongqing XinXing is headquartered at Beibei Dist., neighboring Jinyun Mountain, a national scenic area. The Company has more than 1,600 employees, including 150 engineers, and 75,000 square meters of land including 40,000 square meters of manufacturing space. Chongqing XinXing has state-of-the-art facilities that make it capable of researching, developing, processing and manufacturing various types of gears.

About GE and Chongqing City Cooperation

As one of the four municipalities directly under the Central Government of China, Chongqing City has become a new promising area for investment in China. This cooperation is a significant achievement gained on the strengthened collaboration, joint development and mutual benefits for GE and Chongqing City; therefore, it has important strategic significance on both parties’ continued development. The construction site of this project will be located at Caijia, Tongxing Industrial Park, Beibei District, Chongqing City. Featuring a favorable local environment, it is an ideal location for investment and development.

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