ADVERTISEMENT

GE to double value of procurements in CEE region

Pharma

General Electric aims to double the volume of products and services it buys from Central and East European SMEs, including Hungarian enterprises. The company has approximately 6,000 suppliers in the region and the value of its procurements may reach USD 3.4 billion by the end of the decade, according to a press release sent to the Budapest Business Journal. 

The procurement value from GE suppliers currently exceeds USD 1.7 billion. GE intends to double this figure by extending its SME supplier base, helping the development of regional suppliers, and by transferring its know-how on digital disruptive technologies to its suppliers – the company informed a regional supply chain conference in Warsaw and Elbląg, according to the press release.

Representatives of Hungarian, Polish, Croatian, Czech, Romanian, Serbian and Slovenian government organizations, investment agencies and export banks participated in the CEE Supply Chain Dialogue conference, initiated by GE and co-hosted by the American Chamber of Commerce.  The objective of the event was to explore opportunities to better connect SMEs in the CEE to the global economy via GE’s supply chain, and hence to further increase the competitiveness of the CEE region.

“Central and Eastern Europe has experienced unprecedented growth in the past 20 years. The source of that growth has been low labor costs, robust internal consumption and foreign direct investments. However, a preoccupation with pure technology absorption is not going to maintain economic growth in the long run and the increase in productivity is getting closer to the boundaries of technology,” said Peter Stracar, President and CEO of GE CEE. “Further growth needs different drivers and the real challenge will be how we support the transition of the CEE into an innovation-based region,” he added.

GE buys directly from over 30,000 suppliers from multiple locations around the world and the value of such transactions amounts to USD 70 bln globally, which is over half of Hungary’s USD 124.3 bln GDP, notes the press release. For Europe, this value is approximately USD 9 bln, of which USD 1.7 bln annually comes from the CEE region. GE has over 6,500 suppliers, including 1,500 Hungarian qualified suppliers in the area.

GE Hungary and the Hungarian government signed a memorandum of understanding for the development of SMEs in June. GE has been employing more than 10,000 people in 12 facilities in Hungary and its exports from Hungary amount to USD 3 bln, of which USD 900 million is sourced from local SMEs.

ADVERTISEMENT

Fiscal, monetary policy partnership needed to rein in CPI - ... Analysis

Fiscal, monetary policy partnership needed to rein in CPI - ...

Parl't votes to phase out savings coops integration framewor... Parliament

Parl't votes to phase out savings coops integration framewor...

Roche Szolgáltató appoints P&C business partner lead Appointments

Roche Szolgáltató appoints P&C business partner lead

FAO–Food Bank convoy delivers food to those in need City

FAO–Food Bank convoy delivers food to those in need

SUPPORT THE BUDAPEST BUSINESS JOURNAL

Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.