Evergreen Group and GE announce new joint venture
By John Liu, The China Post
April 1, 2014, 12:09 am TWN
TAIPEI, Taiwan -- Evergreen Aviation Technology (長榮航太, EGAT) and GE Aviation signed an agreement yesterday to form a new venture specializing in providing maintenance services to GE's cutting-edge GEnx generator.
Established in 1998, EGAT is also a joint venture between EVA Air (長榮航空) and GE that provides generator maintenance services. GE and EVA Air have formed a very tight working relationship with each other over the years.
Chang Guo-wei (張國煒), chairman of EVA Air, said that the new venture between GE and EGAT signifies further cooperation between the two companies, and the new venture will provide even better quality services to its customers.
GEnx as GE's Best-selling Generator
GE holds 51 percent equity in the new venture, while EVA holds 49 percent. GE Aviation will provide training and required equipment to service the GEnx generator. The new company is set to provide some maintenance services in 2015, and to provide a full service package in 2019.
David Joyce, the president and CEO of GE Aviation, said GEnx is GE's most cutting-edge generator. He gave very positive remarks about the joint venture and affirmed GE Aviation's ongoing partnership with EVA Air. Joyce stressed that the new company will provide a more extensive customer support network to service the GEnx generator.
Sources said the GEnx generator is GE's fastest-selling generator in history. Over 1,500 orders have been placed by 49 airlines and related production capacity has been growing over the past two years. The generator may be installed in Boeing 787 Dreamliner and Boeing 747-8. Currently, 450 GEnx generators are in service around the world. GE Aviation plans to deliver 300 units to customers this year.
EGAT as Evergreen Group's Cash Cow
EGAT's equity exceeds NT$5.2 billion. The company provides maintenance services for generators as well as different Boeing and Airbus airplane models. For generator parts manufacturing and maintenance, EGAT raked in NT$20 billion in revenue last year, providing a considerable cash flow for the Evergreen Group (長榮集團), the parent company of EVA Air.
GE said the GEnx generator and CF6 generator belong to the same class, and can reduce carbon emission and fuel usage by 15 percent. The generator's design can save up to 400 pounds of weight, and enhances aircrafts' payload efficiency.