GE confirms intention to sell plastics division (January 29, 2007)

General Electric Co. has confirmed rumours that it has put GE Plastics up for sale.
GE officials said that the goal is to complete the sale of GE Plastics, estimated to be worth between US$8 billion to $10 billion, by the second half of 2007.
“This is a world-class businessbut it doesn’t fit with the high yield portfolio that Jeff [Immelt, GE chairman and CEO] is building,” Russell Wilkerson, GE corporate spokesman, said.
In a statement released at the end of 2006, Immelt had outlined GE’s intention to “exit slower-growth and more volatile businesses”, and mentioned in particular the “potential disposition” of GE Plastics.
Headquartered in Pittsfield, Mass., GE Plastics reported a fourth quarter 2006 net profit of US$674 million. The division employs approximately 11,000 people worldwide, with 22 facilities in the U.S., and others situated around the globe.
GE Plastics’ Canadian headquarters are located in Mississauga, Ont.