GE to be split into three companies
Larry Rulison is reporting for the Times Union the CEO of General Electric Corporation, Larry Culp Jr. has announced his plan to break-up the company into three parts, a move that will likely have serious implications for GE's Capital Region operations, as well as the future of the company's historic Schenectady campus, where several thousand people work. Culp, a turnaround specialist renowned for reshaping companies and unlocking shareholder value, announced November 9, that he plans to spin off GE’s health care and energy businesses as standalone publicly traded companies. That would leave what remains of GE to become essentially an aviation company. The news of the breakup plan sent GE shares up more than 5 percent to $114 in early trading on the New York Stock Exchange. The stock later settled at around $112.50 by midday. GE shares are up 29 percent for the year. The impact in Schenectady and in Niskayuna remains to be seen. GE employs between 3,000 and 4,000 people in Schenectady County. GE Healthcare has a digital X-ray machine assembly plant in North Greenbush with 125 workers that will eventually become part of the health care spinoff, planned for 2023. The General Electric Co. was formed when Thomas Edison merged his Edison General Electric Co. with a competing firm in 1892. It became one of the most important and iconic manufacturing and technology firms in history. Over the next 130 years, the company would make everything from power plants and light bulbs to MRI machines and jet engines. Schenectady has been the company's home since the 1920s. During World War II 40,000 people worked there. On Tuesday, local economic development officials were still in the process of assessing the potential impact of the break-up plan. Read more in the Times Union.