GE to Power Chinese Planes

One of the most advanced jet engines soon to enter service has been selected as the sole western power plant for China’s new C919 single-aisle, 150-seat passenger jet. Manufactured by CFM International, which is a 50/50 joint venture between General Electric Co. (GE - Analyst Report) and SAFRAN Group, the engine could end up powering more than 2,000 planes over the next 20 years based on estimates by the developer and manufacturer of the C919, Commercial Aircraft Corporation of China (COMAC).

The deal marks a new era for the joint venture, which last year extended its partnership through 2040 in order to power the next-generation of single-aisle commercial aircraft.

Nexcelle will be a key partner on the world's first truly integrated propulsion system, providing a highly capable nacelle, thrust reverser and exhaust system for the new CFM International LEAP-X1C engine selected as the sole western power plant to launch China's COMAC C919 jetliner.

The engine for China’s new commercial plane is the LEAP-X1C, which has been in development for more than a decade and was built from scratch, as opposed to being a derivative of an existing engine.

In recent years, GE Aviation has dramatically expanded its work in China’s aviation industry.

GE operates as a technology, media, and financial services company worldwide. The company’s Technology Infrastructure segment manufactures jet engines, aerospace systems and equipment, and its replacement parts, as well as provides repair and maintenance services for commercial aircraft; military aircraft, includ¬ing fighters, bombers, tankers, and helicopters; marine applications; and executive and regional aircraft. This segment also produces healthcare products, including diagnostic imaging systems; offers transportation products and maintenance services; provides enterprise solutions using sensors for temperature, pressure, moisture, gas and flow rate, as well as non-destructive testing inspection equipment. Its major competitors include United Technologies Corp. (UTX - Analyst Report) and Siemens AG (SI - Analyst Report).

We currently have a Neutral recommendation on GE.

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