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Press release from Business Wire

GE Oil & Gas Celebrates Expansion of Lufkin-RMT Operation in Wellsville, NY

<ul> <li class='bwlistitemmargb'> <i>Grand Opening of New Facility Coincides with 13 Percent Increase in Local Workforce</i> </li> <li class='bwlistitemmargb'> <i>Opening Comes on Heels of GE Completing Acquisition of Lufkin Industries</i> </li> <li class='bwlistitemmargb'> <i>Move Highlights GE Oil & Gas' Strategic Growth in Industrial Gear Sector</i> </li> <li class='bwlistitemmargb'> <i>Expansion Reflects State and Local Commitment to Support Allegany County Jobs, Economy</i> </li> </ul>

Tuesday, July 09, 2013

GE Oil & Gas Celebrates Expansion of Lufkin-RMT Operation in Wellsville, NY

14:00 EDT Tuesday, July 09, 2013

WELLSVILLE, N.Y. (Business Wire) -- Lufkin-RMT, a part of GE's (NYSE: GE) newly acquired Lufkin Industries, today hosted a grand opening for corporate officials, government representatives and employees at its new manufacturing facility adjacent to the Wellsville Airport in Allegany County, in southwestern New York state. Texas-based Lufkin Industries, a leading provider of industrial gears and artificial lift technologies for the oil and gas industry, is now part of GE Oil & Gas.

The Wellsville facility designs and manufactures precision engineered bearings for rotating equipment such as pumps, turbines, compressors, expanders and gearboxes. The Lufkin-RMT site also repairs, overhauls, and upgrades complete rotating equipment assemblies such as turbo-expanders and gearboxes. The facility's customers include those in the oil and gas and air separation industries, with international regions accounting for nearly 80 percent of the unit's overall business.

Since announcing last July 2012 that it intended to relocate to the new facility, the Lufkin-RMT operation has increased its workforce 13 percent with the potential to hire more skilled workers because the new 55,000-square-foot facility offers opportunities to further expand operations in the years ahead.

“As a global operation manufacturing locally, we are very excited about our commitment to a regional economy that continues to provide the quality workers we need to compete on an international stage,” said John Mulryan, general manager—Lufkin-RMT for GE Oil & Gas. “We are very proud that our only manufacturing operation in the northeastern U.S. is located in Allegany County, New York state.”

The Lufkin Industries division invested $5.5 million in the new facility, with an additional $2.5 million planned by the end of 2013. Additional support of $850,000 in incentives came from the Allegany County Industrial Development Agency (ACIDA) and Empire State Development (ESD).

The new facility was the result of a major renovation of a site that included the installation of a taller roof to better accommodate machine tools and overhead cranes.

The new facility more than doubles the size of the previous Lufkin-RMT's manufacturing space and provides another 10,000 square feet of office space. The company currently employs 68 persons, up from 60 over the past year, with the majority employed as highly skilled machinists.

The new facility is located at 2475 Tarantine Boulevard. Lufkin Industries' presence in Wellsville began in July 2009 when it purchased Rotating Machinery Technology with two leased facilities about four miles away, at 4181 Bolivar Road.

Support for the new facility came from a package of incentives from the Allegany County Industrial Development Agency (ACIDA) and Empire State Development Corp. (ESD) valued at $850,000 over a 10-year period. The New York State Excelsior Jobs program provided $400,000 while the ACIDA program offered another $450,000 in incentives.

“Today's announcement is great news for Allegany County as Lufkin-RMT's expansion is bringing new manufacturing jobs to Western New York,” said Empire State Development President, CEO & Commissioner Kenneth Adams. “The new facility shows what can be accomplished when the private sector and government work together to help a company grow and benefit hard-working New Yorkers. On behalf of New York State, congratulations to GE and the Lufkin division and we look forward to continuing our strong partnership.”

“The expansion of GE's Lufkin-RMT operation in Wellsville with this new manufacturing facility is now a reality and an excellent example of how wise investments by the Allegany County IDA, the state and Lufkin can pay immediate dividends for our local workforce and economy,” said ACIDA Executive Director John Foels.

On July 1, 2013, GE announced it completed its acquisition of Lufkin Industries, based in Lufkin, Texas, for approximately $3.3 billion. The move broadens GE Oil & Gas' artificial lift capabilities with solutions for a wider variety of well types and technology for production automation and optimization in the drilling industry.

About GE

GE (NYSE: GE) works on things that matter. The best people and the best technologies taking on the toughest challenges. Finding solutions in energy, health and home, transportation and finance. Building, powering, moving and curing the world. Not just imagining. Doing. GE works. For more information, visit the company's website at www.ge.com.

About GE Oil & Gas

GE Oil & Gas is a world leader in advanced technologies and services with 43,000 employees in more than 100 countries supporting customers across the industry—from extraction to transportation to end use. Our unrelenting commitment to the environment, health and safety, quality and integrity defines us: it's The Way We Work. We develop smart solutions for our customers across the oil and gas value chain delivering the innovation, customized service solutions, training programs and technology that helps them to maximize their efficiency, productivity and equipment reliability. We partner with our customers to develop their next generation workforce; help them to fully benefit from the megatrends of natural gas, the growth of subsea and hard-to-reach reserves and the revolution in asset health management. Follow GE Oil & Gas on Twitter @GE_OilandGas.

GE Oil & Gas
Fabio Pianini, +39-055-423-8872
fabio.pianini@ge.com
or
Sean Gannon, +1-212-587-5059
sean.gannon@ge.com
or
Carr Marketing Communications
Megan Webb, 716-573-9556
mwebb@carrmarketing.com
or
Masto Public Relations
Tom Murnane or Howard Masto, +1-518-786-6488
tom.murnane@mastopr.com
howard.masto@ge.com

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