China factor, developing world, to weigh in on GE

MADRID - Renewable energy, desalination and developing economies are the focus for General Electric's future, chief executive Jeff Immelt says.

He also expects GE to double its revenues from China to US$10 billion in 2005-08, having already jumped to US$5 billion from less than US$1 billion since 2001.

"China is one of the factors of our time," he said at a business lunch here.

Immelt confirmed that GE, the world's largest company by market value, should boost revenues by more than 10 per cent to about US$165 billion ($242 billion) this year and generate cashflow of more than US$25 billion.

"The economic backdrop is fairly robust and bright so there is a lot to be optimistic about. But with growth comes increasing volatility. We have to be on our toes," Immelt said.

"There is fear and opportunity at every turn."

Many of those opportunities came in new businesses and new markets around the world.

Immelt said revenue from GE's "ecomagination" project - which includes developing clean gas and coal and creating plastics that are easier to recycle - should double to US$20 billion a year while investments would rise to US$2 billion.

Desalination, or turning salt water into fresh water, could also become a US$5 billion to US$10 billion business for GE in the next five years.

"About 40 per cent of the world is going to have a shortage of water in the next 10 to 20 years.

"Most of our future economic history will be written in the developing world," he said.

- REUTERS