GE to Build Diesel Re-Manufacturing Plant

Strong locomotive market demand driving $72-million capital investment program in Pennsylvania

General Electric’s GE Transportation division reported it will build a new diesel-engine remanufacturing plant in Grove City, Pa. Also, the company is investing $37 million in its current plant at that location, for capital investments totaling $72 million, to meet rising demand for its remanufacturing services.

“This new facility will enable GE Transportation to better serve its customers while meeting a dramatic increase in demand for remanufacturing in the next few years,” stated GE’s Global Services Supply Chain Operations Leader, Richard Simpson. “Our investment in Grove City is a commitment to our customers to continue providing them with the best products, technology and services in the industry.”

The 40-year-old GE Grove City plant produces about 2,000 diesel engines annually for GE Transportation and its customers worldwide.

GE Transportation manufactures freight and passenger locomotives, signaling and communications systems, IT systems, marine engines, and motorized drive systems for mining trucks and drills. In October it outlined a $136-millon investment program at its locomotive plant in Erie, Pa., for new R&D/testing cells, plant improvements, and new equipment to reduce engine emissions and improve fuel efficiency of its locomotives, marine engines, and stationary power units. It also has a $191-million plan to build two plants in Fort Worth, Tex., one to assemble locomotives, and one to produce AC-motorized wheels for mining trucks. Both Texas plants will start up in 2012.

The GE unit said it Grove City projects respond to rising demand for its remanufacturing services, specifically due “routine locomotive overhaul cycles” as well as rail operators’ obligation to comply with EPA Tier 3 diesel engine emissions standards by 2013.

The new plant in Grove City will be located at an existing site, starting up late in 2012. GE said it expects to employ up to 250 workers there by early 2013, including about 100 GE employees who will transfer from the current Grove City plant. It plans to hire approximately 150 more workers by early 2013.

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