Mexico's Largest Steel Galvanizing Plant Achieves Power Independence, Realizes $6 Million in Savings Using GE's Gas Engine Technology

Galvanized Steel Produced Shipped to Automotive Industry in North and South America

JENBACH, AUSTRIA - Mexico's largest steel galvanizing plant, owned by POSCO-Mexico, will save $6 million per year in electrical power costs and achieve power independence by using GE's (NYSE: GE) Jenbacher technology. The new nine-megawatt power generation project will use natural gas to produce POSCO-Mexico's onsite power instead of purchasing it from the grid.

The galvanized steel produced will be shipped to the automotive industry in North and South America, which depends heavily on this type of steel for the production of many components used in car manufacturing.

"This new plant provides power for POSCO-Mexico's galvanized steel, allowing the company to better serve the needs of the automotive industry in North and South America," said Gwandeung An, project manager, Daewoo Engineering, POSCO-Mexico's partner in the project. "The savings POSCO-Mexico realizes from producing its own power, all day, every day, using GE's proven Jenbacher technology will allow the company to be in a position to explore expansion of its current facilities."

The power plant, located in Altamira, Mexico, features three of GE's natural gas fueled JMS 620 Jenbacher gas engines, rated at three megawatts each. It was designed and built for POSCO-Mexico by its partner company, Daewoo Engineering Company of South Korea, and will enter commercial operation by the end of 2010. The gas engines were sold to Daewoo Engineering through GE's Jenbacher authorized distributor, Smith Power Products of Salt Lake City, Utah.

"POSCO-Mexico benefits from the higher efficiency, reliability, durability, low fuel consumption and long life of our Jenbacher gas engines," said Prady Iyyanki, CEO-gas engines for GE Power & Water. "This project strengthens our support of business growth in this developing industrial area of Mexico."

Continuously refined based on GE's extensive experience, the JMS 620 Jenbacher engines are reliable, advanced products serving the 1.8 to three-megawatt power range. Their 1,500 rpm engine speed results in a high power density and low installation costs. The pre-combustion chamber achieves maximum efficiency with low emissions. Proven design and optimized components enable a service life of 60,000 operating hours before the first major overhaul.

About GE

GE (NYSE: GE) is a diversified infrastructure, finance and media company taking on the world's toughest challenges. From aircraft engines and power generation to financial services, health care solutions and television programming, GE operates in more than 100 countries and employs about 300,000 people worldwide. For more information, visit the company's website at

GE serves the energy sector by developing and deploying technology that helps make efficient use of natural resources. With nearly 85,000 global employees and 2009 revenues of $37 billion, GE Energy is one of the world's leading suppliers of power generation and energy delivery technologies. The businesses that comprise GE Energy-GE Power & Water, GE Energy Services and GE Oil & Gas-work together to provide integrated product and service solutions in all areas of the energy industry including coal, oil, natural gas and nuclear energy; renewable resources such as water, wind, solar and biogas; and other alternative fuels.

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