In an attempt to fight against the menace of malaria in Africa, General Electric Company (GE) recently announced that it will supply power solutions with three 4-megawatt (MW) Jenbacher J624 gas engines and one 2-MW J612 unit to a new anti-malaria plant in Nigeria, which produces billions of syringes and intravenous (:IV) drug products. The gas engines are expected to be delivered by third quarter 2013.
Clarke Energy – an authorized distributor of General Electric in Nigeria – will supply these gas engines to Integrated Medical Industries Limited (:IMIL), the first company in the West African sub-region to obtain World Health Organization (:WHO) pre-qualification for auto-disable syringes.
Uninterrupted fuel supply is essential for smooth operation of the syringe factory as power failure due to high demands can damage syringes. General Electric’s technology is well suited to meet the power demand of such plants in Nigeria, which according to WHO, account for approximately half the world’s population affected by malaria.
Additionally, the Jenbacher gas engines are more cost effective with reliable performance and greater efficiency. Also the natural gas prices are lower in comparison to diesel fuel engines. The on-site power plant will be in line with the strategy of the Nigerian government to improvise the electrical generation infrastructure of the country.
General Electric is one of the most diversified technologies and financial service corporations in the world. Its segments include Power & Water, Oil & Gas, Energy Management, Aviation, Healthcare, Transportation, Home & Business Solutions, and GE Capital. GE Power & Water produces gas, steam and aero derivative turbines; generators; combined cycle systems; and renewable energy solutions, as well as provides water treatment services and equipment. In the last reported quarter, Power & Water segment recorded revenues growth of 2%.
General Electric currently has a Zacks Rank #3 (Hold). Other stocks that look promising and are worth a look now are Honeywell International Inc (HON), Macquarie Infrastructure Company LLC (MIC) and Crane Co (CR), each carrying a Zacks Rank #2 (Buy).
More From Zacks.com