GE Aerospace does not see its $11.75 billion purchase of Consolidated Precision Products as a model for broad vertical integration across its supply chain. Chief Financial Officer Rahul Ghai told a Morgan Stanley conference that the castings maker is a special case tied to persistent aerospace capacity constraints and the need to accelerate new airfoil technology.
The remarks came in Chicago a week after GE disclosed the planned acquisition, which is designed to ease bottlenecks in precision-cast parts used in jet engines, including turbine blades and vanes. Ghai described CPP as a unique situation and indicated that GE’s priority is to improve delivery performance and expand output rather than bring every part of its value stream in-house.
Industry-wide supply shortages remain a concern, and GE expects capacity pressure to last for some time. The company continues to rely on supplier partnerships even as it moves to secure critical casting capacity for engine production.