General Electric’ power generation unit has announced that it intends to sub-contract the manufacture of steam turbine airfoil components as part of a radical company restructuring.
In addition, its Schenectady-based sales, parts and services operations will be moved to Atlanta and a steam turbine manufacturing facility in Fitchburg, Massachusetts, will be closed. Around 1200 jobs will be shed.
The company will report a $437 million charge for the restructuring and for warranty costs, the latter apparently related to problems with F series gas turbines.
Analysts believe that costs to repair F-series turbines could amount to around $100 million, without taking into account warranty claims.