Automation and controls: GE and FANUC announce agreement to dissolve joint venture
FANUC will reinforce CNC portfolio; GE will continue investment in industrial automation and process control systems, software solutions and embedded computing.
Staff -- Modern Materials Handling, 8/18/2009
GE and FANUC announced today that the two companies have agreed to dissolve the GE Fanuc Automation Corporation joint venture. This agreement would allow each company to refocus its investments to grow its existing businesses and pursue its respective core industry expertise.
Established in 1986, GE Fanuc Automation Corporation was formed to pursue the growth and technical development of the programmable logic controller (PLC) and computer numerical controlled (CNC) business. It grew to serve a number of industries around the world including the energy, water, consumer packaged goods, government and defense, and telecommunications industries with hardware and software solutions, services, automation and embedded computing systems; as well as CNC products.
Under the terms of the agreement, GE will retain the software, services, embedded systems and control systems businesses globally. The company will be known as GE Intelligent Platforms. FANUC will retain the global computer numerical controlled (CNC) business. The transaction is expected to be completed by the end of this year, subject to satisfactory customary closing conditions.
FANUC honorary chairman Dr. Seiuemon Inaba said, “Our joint venture has achieved great success toward its original mission, which was to cooperate on the global growth and technical development of the PLC and CNC business. Over this time period, markets and opportunities also have changed dramatically, and both companies further expanded into adjacent segments. Today’s market conditions are such that it’s imperative we pursue these expanded opportunities, and while we have achieved great things together, it’s in both our best interests that we focus our efforts on industry opportunities unique to our respective companies and that will deliver greater benefits to both our companies.”
GE Fanuc Intelligent Platforms chief executive officer Maryrose Sylvester said, “GE could not have asked for better partners than Dr. Inaba and FANUC. GE is proud of what our companies have achieved together - both the industry expertise and success across our product portfolios. For GE, this change will mean a continued, intense focus on serving our customers around the world while continuing to invest in significant growth platforms like process control systems, enterprise and automation software and embedded computing as we continue to build further expertise around the GE vertical infrastructure segments.”
Sylvester added, “Our top priority is a smooth completion of transition and continuity for all customers, business partners and employees. We are committed to delivering our customer commitments in every segment of our business.”
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