General Electric (GE) continues to build its capabilities in the natural gas turbine market, announcing Monday it would buy privately held Metem Corp.
The New Jersey-based firm, whose largest customer is GE, provides precision cooling hole manufacturing technology that enables gas turbine engines to function more efficiently, according to GE.
Heavy-duty gas turbine blades operate under high temperatures and experience centrifugal stresses, and turbine blade cooling is a key component of GE's next generation of advanced gas turbines.
"Gas turbines coupled with services are the core of GE Power," said GE's Mike Chanatry, vice president of gas power systems supply chain.
As it has worked to bolster its heavy industrial manufacturing business away from financial services, GE in November completed its $10.3 billion purchase of the energy assets of Alstom SA's power business, its largest acquisition ever and a bet on the growth of gas-fired power generating turbines.
The Alstom deal "has significantly improved our competitiveness, particularly in our technology leadership position and global presence," Chanatry said. "In addition to adding to the GE Store capabilities, acquiring Metem would help achieve synergies by improving the overall cost base of products."
Once the transaction is completed, Metem would be managed by its existing leadership team. Financial details weren't disclosed for the transaction, which is set to close by the end of March.