Monday, May 21, 2007
General Electric (GE) is to sell its plastics arm to a leading Saudi Arabian firm for $11.6bn (£5.8bn).
The deal with Saudi Basic Industries Corporation, one of the world's largest petrochemical firms, is the latest in a series of transactions by GE.
The US technology and finance giant has offloaded a number of manufacturing units to focus on faster-growing areas.
GE Plastics supplies plastic resins to the automotive, electronics, packaging and construction sectors, generating annual sales of about $6.6bn.
I highlight this story, because it's another example of US companies getting out of manufacturing all together. We are trying to prove that you can run a first class economy with no manufacturing base. If wrong, the consequences could be a wee bit negative.
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