General Electric Co. (NYSE: GE) has announced that it will base its fifth research and development center in Brazil because of its geographical advantages, tax breaks and opportunity to receive government contracts to help develop Latin America’s largest economy.
The conglomerate announced the center on Friday, which will cost $150 million and house as many as 300 engineers, making it the company’s second largest R&D center outside of the United States, said Alexandre Alfredo, head of communications for GE in Latin America.
The company plans to use the center to focus on research and platforms fo rnew products ni the oil and gas industry, as well as transportation and renewable energy areas.
“If Brazil grows at the same pace or at a pace similar to China’s, let’s say a 10 percent pace of expansion a year, it needs knowledge to invest in infrastructure,” he said. “Research initiatives like this should give the country an edge.”
The move comes as General Electric Co. (NYSE: GE) and other industrial companies are looking to emerging market economies to push for further growth and to diversify their revenue streams after seeing relatively sluggish economic activity in developed nations.