ROANOKE TIMES 
                      Copyright (c) 1996, Roanoke Times

DATE: Thursday, February 15, 1996            TAG: 9602150057
SECTION: BUSINESS                 PAGE: B-8  EDITION: METRO 
SOURCE: GREG EDWARDS STAFF WRITER

GE, FUJI OK JOINT VENTURE SALEM PLANT STAFF SIZE NOT AFFECTED

General Electric Motors & Industrial Systems of Fort Wayne, Ind., and Fuji Electric Co. Ltd. said Wednesday that they are forming a holding company to manage three joint ventures for the purpose of increasing their global penetration of the industrial and commercial drives market.

GE's Drive Systems plant in Salem is a unit of GE Motors. Chuck Campbell, manager of material handling and paper for the Salem plant, has been named chief operating officer of one of the joint ventures, GE Fuji Drives America, which will have its headquarters and a plant in Monterrey, Mexico.

The joint venture will have no direct employment impact on the Salem plant but should strengthen GE's overall business and generate revenues that can be reinvested, GE spokesman Mike Allee said. The joint ventures also should help raise GE's profile around the globe and generate business for the Salem plant, he said.

GE will hold a majority interest in GE Fuji Drives America. Of the other two joint ventures, Fuji will have the majority interest in Fuji GE Asia, and the two companies each will have a 50 percent interest in GE Fuji Europe.

The GE plant in Salem will continue to focus on the design and production of drive systems for such large industries as steel and paper mills, said GE Vice President Russell Shade.

Fuji is recognized as a world leader in the manufacture of packaged drives, used to control the speed of AC motors for products such as fans, pumps and compressors.

The GE Fuji Drives America joint venture will help GE penetrate the packaged drives market in North America, Shade said.

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