General Electric Company (NYSE:GE) announced that BastoFosen, a ferry operator, has agreed to purchase the company’s marine diesel engines for its ferries.The engines are Tier III compliantand produced by GE’s Marine’s International Maritime Organization. They can be used in either new boats or re-powered vehicles. BastoFosen will be in the first group of Northern European customers to ever use the engines. The engines meet compliance standards without the need for SCR after treatments or urea injections.
BastoFosen has ordered 6 of the 8-cylinder engines and that was due to their ability to meet the Tier III standards. This is in addition to two 16-cylinder engines they ordered to re-power vehicles in their current fleet. BastoFosen is a major ferry company and has transport over 1.7 million vehicles along with 3.4 million passengers every year. General Electric Company (NYSE:GE) has a local distributor, Turner EPS, which will provide support for the engines. The IMO Tier III solution is an advanced technology and gives GE a strong competitive edge in the segment. The engines make GE more user friendly with environmental activists also as the new engines meet all global environmental standards.
The engines take up about 75% less space than their counter parts along with reducing the weight by another 75%. They do not require any additional equipment to for the urea and docking infrastructure. General Electric Company (NYSE:GE) also received US EPA certification for its Tier 4 engine. That engine is a 12-cylinder model.
General Electric Company (NYSE:GE) also noted it will use its manufacturing facility in India as an export hub. At least half its production will be sent to global factories. This is GE’s first multi-purpose production facility and will create aviation, rail and diesel engines.
The stock recently moved back over its 50-day moving average which is bullish. Momentum is strong and there could be good follow through. If it can take out its recent $25.90 level there is no resistance until $26.75.