GE sells Welland plant
Mayor Frank Campion doesn’t view the sale of GE’s distributed power division to private-equity firm Advent International, which includes the GE Welland Brilliant Factory, as bad news.
“It’s just news. Instead of it being a GE plant, it will be an Advent plant, or whatever they end up naming it,” Campion said Tuesday afternoon.
He said equipment is installed in the 45,000-square-metre building, on the west side of Highway 140 between Buchner Road and Silverthorn Street, and reciprocating gas engines are expected to start rolling off the assembly line in the next few weeks.
“People are working there and things are operational.”
Campion said it was no secret that GE was looking to sell its distributed power division.
There was an announcement made earlier this year that GE was looking to sell some of its assets.
The mayor spoke Monday with people inside GE about what the sale means.
Advent International reportedly paid C$4.32 billion for the division, which includes all the engine lines GE makes as well as the production facilities, including Welland. The deal is expected to close sometime at the end of the year.
“In talking with our GE contacts here, we learned Advent had been down a few weeks ago to look at the plant and get a good view of things,” Campion said.
He said the city is hearing the Welland facility is an integral part of the sale.
Construction on the plant began in 2016 and much of the equipment came from GE’s Waukesha, Wis., plant.
“It’s business as usual,” said Campion, adding the city is very convinced the Welland facility will not be shut down. “In order to produce the engines, they need the facility here. I think Advent is in this business in a serious way.”
The mayor said the city looks forward to working closely with its GE contacts and Advent International to make the transition as smooth as possible.
Niagara Centre MP Vance Badawey said the GE Welland Brilliant Factory could be a big advantage for its new owners. Being in Niagara, it gives access to both the Canadian market and a large market within a one-day drive of the U.S. There’s also available land for expansion.
He said he will work directly with the new owners and all partners and stakeholders to ensure the plant’s success.
“We’d proactively attempt to have them consider consolidating and integrating other operations in the engine area in the
city of Welland. The new company has a large stake in that area of business,” Badawey said.
Campion also said the city will encourage Advent to expand in Welland.
“I’ve been watching the market and hearing from GE that the demand for their engines has risen 50 per cent over last year’s sales. I think the demand will increase.”
Regional Chair Alan Caslin said Advent is a company that has a solid reputation in the world of power generation. “I know they can increase the capacity of that plant if they choose to,” he said.
He said knowing that Advent spent $3.25 billion on the purchase of the GE division, he believes the company is “serious for that business” and that he doesn’t see any indicators that the deal will have a negative impact locally.
“I think it’s an impressive purchase and I can only see it continuing to be a great benefit for Niagara,” he said.