GE Aerospace to invest US$1 billion to boost U.S. engine production

GE Aerospace is the world's largest maker of jet engines.

GE Aerospace said on Monday it will invest an additional US$1 billion in its U.S. manufacturing sites and supplier base this year to boost engine deliveries and ramp up parts production.

The investment, which follows a $1 billion commitment from the jet engine maker last year, comes amid robust demand for new commercial and defense jet engines and order backlogs with wait times stretching over years.

The company said on Monday that the investments will generate about 5,000 additional jobs in the United States.

“Maintaining U.S. aerospace leadership requires sustained investment in our people, our facilities, and the technologies that will define the future of flight,” CEO Larry Culp said.

More than $275 million of the total investment is expected to be spent on upgrading sites that produce defense engines and components, GE said.

Meanwhile, $200 million will go toward expanding manufacturing capacity for the CFM LEAP engine, which powers narrowbody jets made by Boeing and Airbus.

GE also plans to invest more than $100 million in its external supplier base to provide tooling and equipment aimed at stabilizing production schedules.

The company also spends roughly $3 billion on research and development annually.

(Reporting by Shivansh Tiwary in Bengaluru; Editing by Shinjini Ganguli)