GE to cut 100 jobs at East Houston manufacturing facility

HOUSTON — GE says it’s planning to cut 100 jobs at its Jacintoport facility in East Houston as part of a broader move to shift some of its U.S.-based manufacturing of gas turbines and power generators to Europe and China.

The industrial giant says it is moving a total of 500 U.S. jobs overseas next year because it’s in “a difficult position” after Congress let authorization of the U.S. Export-Import Bank lapse last summer. The bank provided lines of credit and other guarantees to foreign clients, often in developing countries, to buy U.S.-made equipment and other goods, including GE’s power generators and gas turbines.

Related: Former GE CEO Jack Welch tells energy companies to think long term, keep their talent

GE currently has 600 employees at the Houston facility. It said it will need to move its packaging of its aero-derivative gas turbines from Houston to Hungary and China, which have export credit agencies like the now-defunct U.S. Export-Import Bank.

GE said its projects are supported by about 250 suppliers in Texas. Its U.S. suppliers lose $1 million for each package manufactured in Hungary or China.

“When we lose work, they lose work,” GE said in a written statement.

Congressional conservatives, including Texas Republican Sens. Ted Cruz and John Cornyn, have resisted moves to revive the bank. Opponents liken the bank’s loans to corporate welfare.

GE said it’s currently bidding on $11 billion worth of projects that will need a credit export agency to bring the equipment to overseas buyers. Outside of the 100 Houston job losses, GE is also moving jobs from South Carolina, Maine and New York to France, Hungary and China.

GE has also cut hundreds of jobs at its oil field services facilities in Lufkin, Texas, this year.

Related: GE’s Lufkin Industries closing plant

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