GE Buys Metem, Expands Low-Emission Turbine Business

GE logo

by | Apr 4, 2016

GE logoGeneral Electric has acquired Metem Corp., in a move GE says will help it produce more efficient gas turbines with lower emissions.

GE first announced its intent to purchase the technology provider in December.

By bringing the cooling hole-manufacturing technologies in house, GE expects to streamline its supply chain and reduce costs in its turbine business. The companies did not disclose the terms of the sale, which comes as GE aims to cut $1 billion a year from its supply chain.

At the time of the acquisition close, GE was Metem’s largest customer.

GE’s HA gas turbines can achieve more than 62 percent efficiency, the company says. Achieving that level of efficiency subjects heavy-duty gas turbines to very high temperatures during operations, making metals weaker. With heavy-duty gas turbine blades operating under high temperatures and experiencing significant centrifugal stresses, turbine blade cooling is an important component of GE’s next generation of gas turbines.

“Gas turbines coupled with services are the core of GE Power, and Metem’s acquisition will help achieve synergies by improving the overall cost base of products and enhancing the GE Store capabilities for customers,” said Mike Chanatry, VP of gas power systems supply chain, GE Power, in a statement announcing the acquisition.

The sale comes as manufacturers are facing stricter emissions regulations as countries — including the US and China — look for ways to cut carbon pollution to meet the terms of the Paris climate deal.

Metem’s workforce as well as the company’s facilities and resources in New Jersey, Pennsylvania and Hungary, will be integrated into GE over the next six to 12 months. Metem’s headquarters in Parsippany, New Jersey, will become a Center of Excellence for GE Power.

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