GE to Invest $500 Million in Brazil - Analyst Blog

General Electric Company (GE) announced plans to put in more than $500 million into its Brazilian operations.

GE announced that it will focus on areas including oil, gas, renewable energy, mining and transportation. The company also plans to build a $100 million R&D center in Rio de Janeiro by late 2012, creating 200 jobs for researchers and engineers.

The remaining $400 million, which will be utilized to create 1,000 new jobs, will be used to increase the capacity of its factories in Brazil and to develop new products in energy, oil, gas, health care and transportation over the next three years.

Moreover in Asia, the company is expected to invest $500 million in research and development and new customer-centric innovation centers in China, creating more than 1,000 jobs. More than $1.5 billion is expected to be put toward new joint ventures with Chinese public enterprises in high-technology areas.

GE has one of the best infrastructure franchises worldwide with solid organic growth rates, exposure to favorable secular trends and a large installed base supporting a growing annuity-like service business. 

Infrastructure businesses from GE are helping build the energy, health, transportation and technology infrastructure of the new century. These businesses provide the products and services that help developing regions participate in the global economy, while also helping developed regions upgrade with cleaner, more efficient and better infrastructure technologies.

Financial business at GE offers an array of products and services aimed at enabling commercial businesses, consumers and markets worldwide to build a stronger, financially secure future.

The company has adopted strategic imperatives to strengthen its portfolio by building strong growth platforms and generating cash from low-return businesses. Its focus remains on accelerating organic growth and achieving technical and service excellence, while building enduring customer relationships around the world. 

GE has products and services ranging from aircraft engines, power generation, water processing, and security technology to medical imaging, business and consumer financing, media content and industrial products. Since its incorporation in 1892, the company has developed or acquired new technologies and services that have considerably broadened the scope of its activities.

We currently have a Neutral recommendation on GE for the long term.