MANUFACTURING FACILITY

GE Aims to Concentrate on Batam

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New York-listed conglomerate General Electric (GE) Co., is seeking a better foothold in Batam, Riau Islands, Indonesia, with an investment of US$10 million for the construction of a high-bay manufacturing facility producing subsea wellhead equipment.

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Photo courtesy of GE Power & Water

“Batam captures most of our attention here; we don’t want to bite off more than we can chew,” GE Oil & Gas Asia Pacific regional general manager Visal Leng told The Jakarta Post on Friday on the sidelines of the 37th Indonesian Petroleum Association (IPA) convention.

“My key message is we will focus on Batam.”

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He said GE Oil & Gas had invested more than US$12 million in Batam since 2011 for plant expansion, technology upgrades and a new high bay workshop, and it was ready to spend up to $10 million this year alone for the new high bay facility.

The planned high bay facility, which will produce vertical subsea trees, would be the company’s first project of this kind in the Asia-Pacific region, said Leng, adding the firm had experience of similar projects in the US and Europe.

Subsea tree — used in offshore and oil and gas fields — monitor and control the production of a subsea well during oil and gas extraction activities.

Leng said the company aimed to create up to 30 new jobs once the facility expansion commenced, with employes to be trained at the company’s training center in Aberdeen, the UK.

The new high bay facility is projected to be completed in June this year and the firm aims to produce its first subsea tree in November, GE Indonesia president and CEO Handry Satriago said in a statement.

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(http://www.genewscenter.com/Multimedia/GE-6FA-gas-turbine-13b6.aspx)
(http://www.genewscenter.com/Multimedia/GE-6FA-gas-turbine-13b6.aspx)

GE Group’s companies in Indonesia that serve the oil and gas industry, include Schlumberger Indonesia, the local arm of the world’s largest oilfield services company Houston-based Schlumberger Ltd., and Siemens
Energy Sector, one of the arms of the German multinational engineering and electronics conglomerate Siemens AG.

In other sectors, GE fulfills demands from companies such as state power firm PT Perusahaan Listrik Negara (PLN), state railway company PT Kereta Api Indonesia (KAI) and flag carrier PT Garuda Indonesia.

GE also supplies medical equipment including magnetic resonance imaging (MRI) equipment and computed tomography (CT) scanners.

Around 70 percent of GE Indonesia’s business deals with orders from state-owned companies.

In February this year, visiting GE chief executive officer Jeffrey Immelt told reporters the firm would spend more than $300 million in Indonesia over the next five years in the areas of rural health care and deep-sea drilling as the company steps up investment in emerging markets. (Amahl S. Azwar, The Jakarta Post)

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