GE plans to invest over $450 million to upgrade U.S. manufacturing in 2023

(Reuters) – General Electric said on Thursday it plans to invest more than $450 million in its existing manufacturing facilities in the United States this year and hire more than 1,700 employees, in a bid to bolster its aerospace and energy businesses.

The move comes as the Boston-based conglomerate is wrestling with inflationary and supply-chain pressures, and is adjusting its prices to offset higher costs.

The company, which operates 58 facilities in the U.S., said it will invest in cutting-edge equipment, facility upgrades, other improvements. The improvements are being made as GE is looking for ways to improve costs and inventory, it added.

The upgrade come ahead of the company’s planned creation of two independent companies in energy and aerospace.

GE, which completed the spin-off of its healthcare unit in January, has plans to spin off its energy businesses, including renewables, into a separate company next year.

GE Aerospace expects to invest more than $335 million across its U.S. facilities, while the energy unit, GE Vernova, anticipates investing upwards of $117 million.

(Reporting by Aishwarya Nair in Bengaluru; Editing by Shailesh Kuber)