Monday, May 21, 2007

GE Unloads Plastic Units To Large Saudi Firm

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.