24-04-2025
- Business
- Business Journals
GE Aerospace to invest $16M in Durham despite tariff impacts
GE Aerospace has hundreds of workers in Durham an thousands across North Carolina.
Story Highlights GE Aerospace plans $1 billion investment despite tariff impacts.
Durham facility to receive $16 million for increased engine production.
GE Aerospace employs 2,000 people across North Carolina.
Despite significant impacts expected from tariffs, GE Aerospace still plans to invest $1 billion into its manufacturing operation, including in Durham.
Tucked away near Research Triangle Park, GE Aerospace operates an airline engine manufacturing facility with 400 employees. It's one of just three GE Aerospace commercial engine assembly lines in the United States. And of that $1 billion planned investment, $16 million has been earmarked for the Durham site.
Tariffs, however, are taking a toll on the bottom line.
On an earnings call this week, H. Lawrence Culp, CEO of GE Aerospace, reiterated the company's commitment to investing in manufacturing. But he also told analysts tariff policy would 'result in additional costs for us and our supply chain.'
The company, based in Cincinnati, will seek to save $500 million this year by cutting costs and raising prices. But GE Aerospace does not plan to pull back in Durham. Kristen Neubauer, Durham plant leader said in an email that, 'as demand grows, we'll continue to build capacity into our shop to meet that ramp for our customers.'
The firm doesn't provide site specific numbers, but said it delivered a total of 1,900 engines last year. In Durham, that includes engine models for regional aircraft (CF34), narrow body aircraft (CFM56, LEAP) and wide body aircraft (CF8, GE90, GE9X, GEnx).
The company recently confirmed plans to make major investments at the site, including new assembly systems that will increase capacity.
Neubauer said the focus is on creating 'world class processes' to be ready to ramp up the LEAP engine and wide body 9X engine. The LEAP will power planes such as the Boeing 737 Max and the Airbus A320neo. The GE9X will power massive Boeing 777Xs.
'We have done a lot of work focused on improving safety, quality and delivery,' Neubauer said.
GE Aerospace has 2,000 employees across the state. GE Aerospace's investment in Durham is part of a $100 million commitment across the company's entire North Carolina operation that also includes $13 million at its West Jefferson site and $20 million at a facility in Asheville that produces engine parts. The company also has operations in Wilmington.
GE Aerospace is a collaborator in Honda Aero, which has a facility in Burlington that makes the engine for the HondaJet manufactured by Honda Aircraft Co. in Greensboro.
North Carolina is getting a lot of attention in the aerospace sector, including from JetZero, a next-generation jet maker considering the Greensboro area for a 10,000-job manufacturing plant.
