GE forms joint ventures in Russia

GE Healthcare of Chalfont St. Giles, U.K., has formed two joint ventures in Russia, one to manufacture medical imaging equipment in the country and the other to build power generation turbines.

GE signed a framework agreement with Russian state corporation Russian Technologies (Rostekhnologii) to form the healthcare joint venture, with each partner holding 50%. The joint venture is expected to begin with the production of CT scanners, and then expand to other imaging equipment, such as MRI, PET, and ultrasound scanners, as well as angiography and digital x-ray systems.

The joint venture may use the recently established joint GE Healthcare-Medical Technologies Ltd. CT scanner assembly facility in Moscow. Healthcare components initially will be sourced from GE, shifting later to local production by Russian suppliers as they meet GE's requirements for quality, cost-effectiveness, design specifications, and intellectual property protection, the company said.

The Russian government plans to spend more than $15 billion from 2011 to 2013 on healthcare. GE estimates current Russian demand for CT scanners alone at 3,000 units.

In the power generation joint venture, GE has partnered with Rostekhnologii and also Inter RAO UES to produce gas-fired power generation turbines.

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