GE gets 2nd engine backing; to open locomotive plant

Item Staff Report – A Republican-controlled House panel approved a defense bill early Thursday in Washington, D.C. that challenges President Barack Obama on a variety of issues including, most notably of local interest a move to facilitate the resurrection of the General Electric-Rolls Royce second engine project.By a vote of 60-1, the House Armed Services Committee approved the broad, $553 billion defense blueprint that would provide a 1.6 percent increase in military pay, fund an array of aircraft, ships and submarines, slightly increase health care fees for working-age retirees and meet the Pentagon’s request for an additional $118 billion to fight wars in Iraq and Afghanistan.It also delays the Obama’s new policy allowing gays to serve openly in the military and limit the commander in chief’s authority on slashing the nation’s nuclear arsenal.The lone no vote was Rep. John Garamendi, D-Calif.The bill takes a step toward reviving an extra engine for the next generation F-35 fighter plane despite objections from the administration and Defense Secretary Robert Gates that the engine is not needed.The Pentagon recently notified GE and Rolls Royce that it had terminated its contract and work was stopped a month ago, saving $1 million a day. The company said last week it would spend its own money to build the engine. The second engine project supported 300-400 jobs at its Lynn River Works aviation facility, according to company and union officialsThe bill would force the Pentagon to reopen competition for the engine if defense officials have to ask Congress for more money so Pratt & Whitney can build the chosen design.Rep. Mike Coffman, R-Colo., called the effort a “back-door way” of getting the engine back in.Also on Thursday, GE said its transportation unit plans to open a locomotive-making plant in Fort Worth, Texas that will create more than 500 manufacturing jobs. There was discussion in recent months that GE would place a locomotive plant in its now-shuttered naval turbine plant in Lynn.GE said it will invest up to $96 million in the new 900,000 square-foot Texas plant, which is expected to begin production next year. It expects to begin the hiring process for salaried and production jobs later this year.The conglomerate, which is based in based in Fairfield, Conn., said it needs more manufacturing capacity to meet strong U.S. and global growth in the transportation business. The state of Texas will pay up to $4.2 million in incentives.(Material from The Associated Press was used in this report.)