GE may sell-off appliance business
US RESIDENTIAL AC manufacturer General Electric is considering selling its appliance business after more than a century in operation.
The company is reviewing three possibilities for the business unit: a strategic partnership or joint venture, a spin off or the sale of the business.
GE's appliance unit which makes air conditioners and fridges, generated just 4% of total revenues in 2007. Part of GE Industrial's consumer and industrial division, GE Appliances is worth more than $7 billion.
GE aims to benefit from growth in emerging markets but the division currently gets most of its revenue from the US.
'This review is consistent with the strategy we have been executing to transform our portfolio for long-term growth, ' GE chairman and CEO Jeff Immelt said.
Referring to GE Appliance's position Immelt said 'However, it remains primarily a U.S. business, meaning its fortunes are tied to the rise and fall of a single market'.
Employing 13,000 people worldwide, GE Appliances is headquartered in Louisville in the US.
Chinese company Haier has been rumoured as a possible
buyer after losing out to Whirlpool in the buy-out of Maytag.