General Electric has announced that it will construct a major new research and development facility in the Detroit, Michigan area. The new R&D centre will be focused on the development of smart grid technology, clean energy, aviation and information technology.

The June 26 announcement said the $100 million facility would cover 100,000 square feet and will employ about 1,200 engineers and scientists.  It is set to open later in 2009.  The highly trained specialists will focus on three work areas – smart grid and health care software development, manufacturing technologies for its high-tech products, and other information technology applications.

“We plan to start right away,” said GE CEO Jeffrey Immelt.  “We’re in energy, health care, transportation.  We’re a $19 billion-a-year exporter.”  Immelt announced the new research facility himself at the Economic Club of Detroit.  

“Our aspiration is to be a good long-term partner in some of the industries that will shape the 21st century.  We believe the U.S. has to be an export-oriented country, and you have to do that from the standpoint of technology.”

GE experts in business intelligence, data architecture, networking, program management, and software development will be located at the new building and will be developing cutting edge technology.  The location will also become a training facility for IT professionals employed by the company.

GE expects the new R&D centre to accelerate the time-to-market processes involved in developing new products and will increase the firm’s ability to market advanced technologies.  In all about 2,800 employees will be added to GE’s payroll at sites in China, Germany, India, and GE’s original research lab in Niskayuna, New York.

The Detroit lab will greatly enhance synergy within the corporation, especially between the new centre and the New York site, according to Todd Alhart, a spokesman for GE Global Research in Niskayuna.

Niskayuna typically works on developing prototypes and manufacturing processes using fundamental materials.  Discoveries will be passed on to Michigan for further development and advancement to the consumer market.

“We do a lot of work in advanced manufacturing technologies here up through the subscale and pre-production work, and this new centre will take it further,” said Alhart.

The state of Michigan gave GE plenty of incentive to locate the new R&D facility there - $74 million in conditional incentives will be available for the next 12 years.  Michigan has been very hard hit by the recessionary economy.

A Web site is due to be online next week for prospective employees at the new research site.  Immelt said the typical jobs pay around $100,000 a year.  The CEO called for a renewal of American industry that emphasises on manufacturing, exporting, capital investment in new technology, development of clean energy, and affordable health care innovations.

“Change can come, but it requires a new way of thinking,” said Immelt.  “It requires a clear and determined plan of action.  It requires a stiff dose of candour about the troubles we face, many of which we brought on ourselves.  It requires leaders throughout the economy to take command of events.  The world has been reset.  Now, we must lead an aggressive American renewal to win in the future.”

The Obama administration has said that retooling Detroit to focus on green manufacturing and technology is a major focus.  The President is encouraging automakers to remake themselves in order to reduce dependence on foreign oil supplies.

General Electric
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http://www.ge.com
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