Turbomecanica sells stake in joint venture

Turbomecanica Bucharest, a producer of components for aircraft engines, whose clients include Airbus, has sold to the American group General Electric (GE) the 50% stake it held in Turbomecanica Combustor Products (TMCP), a joint venture between the two companies, according to Turbomecanica representatives. However, they refused to reveal the value of the transaction. “The sale of our stake to General Electric is stipulated in the company’s establishment contract. Under the confidentiality provision included in our contract with General Electric, we cannot specify the value of the transaction,” stated Silviu Panait, marketing and strategy manager at Turbomecanica. He was willing to specify, however, that the sale of this stake would not have a significant impact on the company’s financial results. “Financially, the contribution of Turbomecanica Combustor Products to the company’s consolidated results is zero. Therefore the absence of the joint venture neither supplements, nor diminishes our financial results,” says Panait. Turbomecanica Combustor Products was originally registered in March 2005 as a joint venture between GE Aircraft Engines and Turbomecanica, involved in the construction of combustion chambers for aviation engines. Turbomecanica will continue to provide components and technical support to TMCP, on the basis of long-term contracts. Turbomecanica will also expand its partnership with General Electric Aviation, which was formed in 1998. The company’s business with General Electric accounts for around one third of Turbomecanica’s overall turnover.