PSM customers unaffected by GE’s acquisition of Alstom

Finally, the deal is done, the ink is dry: GE owns Alstom. And PSM, which was an Alstom company, is now part of the Ansaldo Energia Group. Most readers already know this, but many gas-turbine owner/operators have expressed confusion at recent industry meetings regarding what parts and services PSM will offer for their 501F and 7FA engines going forward. The short answer: Everything the company has provided up to now, with more products and services on the way.

Some history is important to be sure you have the facts. GE announced its intention to buy Alstom in April 2014, according to reports in business papers. After months of listening to customers, competitors, unions, government agencies in nearly two-dozen countries and regions, and others, the US Dept of Justice (DOJ) and the European Union (EU) announced on Sept 8, 2015 that GE could acquire Alstom, but not PSM.

The highly regarded third-party parts/services provider was then ring-fenced into a separate organization, with a Hold Separate Manager to oversee its business, in accordance with a civil antitrust action filed by the DOJ. From Sept 8, 2015 through Feb 25, 2016, PSM was technically owned by GE/Alstom, but those companies had no involvement in PSM’s business during that time. On February 25, Ansaldo Energia purchased PSM, retaining the entire catalog of intellectual property (IP) for its product portfolio.

GE has received a license limited to certain historical PSM intellectual property relating to offering after-market services for Siemens and Mitsubishi gas turbines only (not for GE).

PSM retains all intellectual property, documentation, people, and assets to support its 501F and 7FA customers and the company continues to offer all products, services, and technologies previously available. No PSM personnel transferred to GE.

Owner/operators also have raised questions about GE’s supply-chain access where PSM has product tooling assets and whether this could hamper PSM’s customer obligations for parts delivery and inventory. PSM management informs that no PSM capital parts inventory or in-process will be transferred to GE and that there will be no disruption in its supply chain.

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