For GE Transportation, a $231 million investment

GE Transportation announced Tuesday investments totaling $231 million in manufacturing improvements and site upgrades to its Erie, Pa., site and a new manufacturing plant in Fort Worth, Tex., “to meet accelerating domestic and global demand.”

“The expansions reflect GE Transportation’s growing global presence and rising demand for products and exports, particularly in the growing global mining industry,” said GE Transportation President and CEO Lorenzo Simonelli. “These latest investments in our U.S. facilities put GE Transportation in a position to shape the future of the transportation industry worldwide. We’re making significant investments in GE’s technology leadership, product innovation, and state-of-the art manufacturing operations to serve our customers worldwide.”

GE Transportation said a return to double-digit growth in 2011 has resulted in job growth in its U.S. facilities. The company has filled more than 2,000 jobs in the U.S. in 2011, including more than 1,100 jobs filled at GE Transportation’s key manufacturing location in Erie. GE Transportation will additionally hire about 360 new employees in Erie by the end of 2011, including 160 production workers to meet increasing demand for mining equipment. GE will also hire about 200 employees to backfill positions following the upcoming early retirement of production workers in Erie. The company is offering a Special Early Retirement Option and a Voluntary Retirement Incentive Program to eligible employees as part of the union contract ratified in June 2011.

In Erie, GE will invest $58 million in research and testing technology, facilities, and equipment to reduce engine emissions and improve fuel efficiency of GE locomotives and as well as engines used in the marine and stationary power industries. This includes investments in test laboratories, called test cells, for large-scale diesel engines at the Erie plant. The enhanced test cells will enable GE engineers to refine “an industry-leading locomotive that is fuel-efficient, reliable, durable, affordable, and that meets stringent EPA Tier 4 emissions standards scheduled to take effect in 2015,” the company said. “The success of this program will be a keystone to GE Transportation’s continued growth.”

GE will invest an additional $38 million in the Erie plant this year to increase capacity and modernize machining, equipment, and tooling used for producing locomotives, drive systems for mining trucks, and other transportation products. Production at the Erie plant is currently at levels equivalent to the facility’s peak production levels achieved most recently in 2008. The company will also spend $40 million on facility upgrades and site beautification at its more than 100-year-old Erie plant, including new offices for hundreds of employees and a Customer Showcase Center.

GE also intends to build a 236,000 square-foot facility adjacent to its new manufacturing plant in Fort Worth to complement its manufacturing operations in Erie. Pending necessary public approvals, the company plans to invest approximately $95 million in the new facility to manufacture and assemble AC motorized wheels for off-highway vehicles. It plans to launch production at the new facility in mid-2012 and anticipates hiring approximately 130 employees there.

GE Transportation reported $2.1 billion in revenues for the first half of this year, up 45% compared to the same period last year. Segment profits for the same period were $335 million, up 135%. GE Transportation received $2.3 billion in orders in the first half of 2011.

“According to an economic impact study conducted by independent research firm Tripp Umbach in 2010, GE Transportation is a significant contributor to the economic health and quality of life in communities across Erie County, Northwestern Pennsylvania, and the state,” the company said. “GE’s transportation business supports one in 11 jobs in Erie County and approximately one in 350 jobs in Pennsylvania. Every GE job supports close to three additional jobs across the state. GE Transportation’s operations have an annual total economic impact of $2.7 billion on Erie County and $4.6 billion on the state.”