General Electric Company (NYSE: GE) has recently announced that its new headquarters would be situated in the Seaport District of Boston. The company’s purchase will be approximately 2.5 acres of land from Procter & Gamble.
The employees of General Electric will be transferred to a certain location in Boston temporarily, since the acquired establishment needs some renovation. The GE employees will start to shift to the new headquarters in the summer of this year, and the transition will be finally completed in stages by the year 2018. General Electric Company has chosen the Boston area because of the place’s business environment, employee experience, long term business expenses, as well as its tight connections with the other parts of the world. The corporation has stated that its offices in Fairfield, Connecticut, as well as New York City will be up for sale in order to compensate for the transition costs.
The Vice President of General Electric Company Ms. Ann Klee has pointed out that the conglomerate was interested about the location, which offers a good opportunity for the development of not only Seaport District, but also to the nearby communities.
The GE Vice President further added that, “Going forward, GE plans to be an active part of the Boston community. We believe that Boston can capture future growth in important new innovation in the industrial internet and advanced manufacturing.”
The President of Procter & Gamble Mr. Charlie Pierce has remarked that P&G was looking at the decision of General Electric as a gesture of goodwill and is hoping that this move will serve as a milestone in contributing to its prosperity. Procter & Gamble creates technology at this location, as well.
Generel Electric will engage nearly 800 employees in Boston. Out of these 800 employees, 200 will serve as the corporate staff, and the rest will work as digital industrial product managers, designers, as well as developers. The Aviation, Oil & Gas, as well as Energy Management business segments of General Electric across the Massachusetts area are composed of almost 5,000 employees.
The CEO of the conglomerate Mr. Jeffrey Immelt talked about this move just recently at the Boston College Chief Executives Club. The GE CEO has vowed that any public investment undertaken by his corporation will be absolutely worth it.
City and state authorities have offered General Electric with a package of incentives in order to secure the move of the GE headquarters to Boston. For instance, the city has offered the GE Company with direct property tax relief amounting to up to $25 million, while the state has established grants for infrastructure improvements in and around the Boston site, which is worth up to $120 million.
The GE CEO Mr. Immelt was also quoted by the Boston Globe for stating that “for every dollar that was invested in GE being here, you will get back one thousand fold. Take my word for it.”
Furthermore, a report in Hartford Courant also said that Mr. Immelt remarked that he is not going to say anything negative regarding Connecticut and that the GE CEO feels that the move is “really about the future.”