GE aims to usher in the new with inland operation

The US technology conglomerate General Electric Co announced it will open its first customer innovation operation in the world in Chengdu, capital of Sichuan province, to answer the government's call for industries to move inland in China.

The opening of the center will coincide with the company's 2010 pledge to commit $2 billion toward innovation and partnerships in China during the next three years.

According to Jeff Immelt, GE chief executive officer, customers will be invited to the center to help GE engineers invent products and services to better meet local needs.

Besides the Chengdu center, two similar operations are to be opened in the cities of Xi'an and Shenyang during the coming months. They will be closely tied to research GE conducts in Shanghai, Beijing and Wuxi in the hope of better serving the west, north, central and south China markets.

The Chengdu center, which occupies 33,500 square meters, employs more than 500 people and specializes in the study of healthcare, oil and gas as well as transport, among other things. The total investment in the project amounts to $80 million.

"Establishing the innovation center aligns with China's sustainable growth and economic restructuring strategy and, at the same time, helps cultivate local talents," Immelt said.

The company believes that GE's pursuit of innovation at its Chengdu operation will contribute to Sichuan's goal of having 50 percent of its economic growth come from technology by 2015, he added.

Ge Honglin, mayor of Chengdu, said the city is embracing GE as the company expands its presence in China.

The GE local team also plans to work closely with customers to bring more advanced products and services to those who have needs related to primary healthcare, aiming to lower costs and give people more access to qualified medical services.

And GE will open an electronics lab in the center, where batteries and applications in electric vehicles will be tested.

Last year, foreign direct investment in China stood at $116 billion, of which only about $12 billion went to western parts of the country. Even so, that region saw FDI increase by 28 percent, more than four times the rate in the east.

Chengdu has lately become attractive to foreign investors, largely because of its vast resources and strong economic growth.

Last year in Chengdu, the Dutch chemical company Royal DSM NV completed its fifth plant for making premixed animal feed, which has the biggest capacity among operations of its kind in China.

Likewise in March, the US-based Dow Chemical Co opened an innovation center in Chengdu.

hewei@chinadaily.com.cn