Babiš withdrew, the GE factory near Prague will begin to be built
By 2022 at the latest, the American concern General Electric will start production of turboprop aircraft engines and drone propulsion units near Prague. The investment agreement with the Americans was approved by the government. The company will not only manufacture engines, but also develop and test them, which will help the Czech Technical University. It also educates hundreds of engineers for the air race.
Due to the intention recently a dispute arose between the Ministries of Finance and Industry Andrej Babiš (ANO) and Jan Mládek (ČSSD).
“The Ministry is in favor, it just does not want implementation in a form that is universally advantageous for the company, while the Czech state or its taxpayers bear the vast majority of costs and risks,” Babiš’s office said.
The Treasury chief eventually changed his mind in exchange for the agreement containing an increased guarantee from the American company that the investment would actually be feasible. In return, the state should provide CTU for engine development and training of hundreds of engineers. The money should return later in the form of European subsidies.
From 2022, the factories should produce four hundred engines a year, and in the next four years it should increase production to six hundred engines. The new plant will create at least 500 new jobs. GE may apply for a standard investment incentive for the construction of new operations up to a maximum of 25 percent of eligible costs.
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The government resolution approved today envisages that the state will release support in the amount of almost two billion crowns from 2016 to 2018 to finance preparations for the development of new turboprop engines for the Czech Technical University in Prague (ČVUT). In the event that in 2017 the financing is fully secured from EU funds, the funds will be returned to the state budget.
“The Ministry of Finance assumes that the project will be mostly covered by EU funds managed by the Ministry of Education. However, in case this application for EU funds is not successful, this scenario is not expected with regard to the quality of the project.
According to him, CTU must start buying technologies for which it does not have sufficient funds and money from EU funds available later. “If we obtain a European subsidy for excellent research in the field of aircraft engines, we will increase the prestige and quality of our school,” said Michael Valášek, Dean of the Faculty of Mechanical Engineering at the Czech Technical University.
General Electric is one of the largest companies in the world |
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Business card of the American company General Electric (GE), which is planning to build a plant in the Czech Republic for the development, testing and production of turboprop engines (the government today approved an investment agreement with GE): |
General Electric (GE) is America’s largest industrial conglomerate and in terms of market capitalization, it is one of the three largest companies in the world. It focuses mainly on transport technology, oil and gas, financial services, energy, aviation, healthcare and the pharmaceutical and engineering industries.
– GE was founded in 1892 and is headquartered in Fairfield, Connecticut. – It has branches in 170 countries around the world and employs over 300,000 people. – GE’s total gross profit was $ 32.4 billion ($ 796.8 billion), compared to $ 31.8 billion ($ 782.1 billion) in 2014. – In the second quarter of this year, we increased GE’s total revenues by 15 percent to $ 33.49 billion (CZK 821.6 billion), including power plant revenues, which increased by 31 percent. According to the company, on the other hand, difficult conditions prevailed in the oil and gas division and the transport division. The net profit distributable among ordinary holders then reached 2.74 billion dollars (CZK 67.2 billion). In the same period a year ago, the company was at a loss. – The conglomerate began its transformation last year, the goal is to return to major industrial activities such as aviation and energy. Under the leadership of CEO Jeffrey Immelt, the company seeks to curb its financial sector activities and focus on industrial production, such as the aerospace, oil and gas, and power generation industries. – In the last quarter of last year, GE completed the acquisition of energy assets from Alstom, which significantly strengthened its power plant activities. GE has also separated its renewable energy activities into a separate division. – The company also continues to build a digital division. In January, she announced that she would move her headquarters from Fairfield to Boston after more than 40 years. She hopes this will help her recruit new software engineers. – GE Money CR Group is a part of GE Capital, the global financial division of the conglomerate. These include Moneta Money Bank, Moneta Money Auto and Moneta Money Leasing. Moneta Money Bank is the sixth largest bank in the Czech Republic. – GE should start production at the new plant in the Czech Republic by the end of 2022. At that time, the company’s production in the Czech Republic should reach 400 engines per year, and in 2026 600 engines. At least 500 new jobs should be created in the new plant within ten years. – GE may require a standard investment incentive intended for the construction of a new plant up to a maximum of 25 percent of eligible costs. Thanks to the investment, the Czechia would become one of the five countries in which aircraft engines are designed and manufactured. – GE already manufactures turboprop engines in Waltrovka, Prague. Walter Engines bought GE in 2008 and renamed it GE Aviation Czech, now part of the GE Aviation Division. |