Zhejiang electric motor producer acquires GE's motor business

Chen Jiancheng(right), president of Wolong Electric and Russell Stokes(left), president and chief executive officer of GE Power, shake hands at the ceremony of Wolong Electric's acquisition of GE's mid- and low-voltage motor business in Atlanta, Georgia, US, June 30. [Photo/Wolong Group WeChat]

Zhejiang-based Wolong Electric Group Co Ltd, China's largest electric motor producer, announced on June 30 that it has agreed a deal to acquire General Electric's (GE) Small Industrial Motor (SIM) division for 160 million US dollars.

Chen Jiancheng, president of Wolong Electric and Russell Stokes, president and chief executive officer of GE Power, attended the signing ceremony in Atlanta, Georgia, the United States.

The acquisition mainly includes the design, development, manufacturing, sales and other areas of GE's mid- and low-voltage motors below 1,750 horsepower.

The deal also signals that GE SIM will officially become a pivotal part of Wolong Electric's global business.

The acquisition marks a milestone for Wolong's global strategy, and is of great importance for the company as part of their attempts to further strengthen the core business and expand the global sales network, according to Chen.

He said that Wolong also signed a 10-year Trademark License Agreement with GE, which will help to promote Wolong's products to the American market through the SIM business.

The new Wolong Electric SIM Sales will be headquartered in Houston, Texas, in the US.

Founded in 1998, Wolong Electric is a part of Wolong Holding Group Co Ltd, one of China's largest 500 companies. With over 15,000 staff and 14 billion ($211 million) worth of total assets, the group mainly focuses on designing and manufacturing of a variety of motors and drive controls.

Chen Jiancheng, president of Wolong Electric inspects the Mexican factory of Wolong Group. [Photo/Wolong Group WeChat]