Beijing Olympics boost to GE's revenues

Olympic sponsor General Electric Co. is looking to generate substantial revenue from China's preparations for the Beijing 2008 Summer Olympics.

The company is expected to sell about 357 million euros worth of electricity-producing turbines, lighting systems and other equipment for the new Olympic venues. In addition to this business opportunity, GE has plans to double its China revenue by 2010. Already this year the company also expects to receive more than half of its total sales from outside of its home country of the US.

GE's chief marketing officer Daniel Henson says the upcoming Olympics are the perfect opportunity to showcase the company's technology and also for generating more revenues. Taking center stage at next year's Olympics will be GE's energy-efficient "Ecomagination" products, among others.

China is currently rapidly upgrading its infrastructure and needs lots of new construction, power and transportation equipment, which presents a goldmine for companies like GE.

GE currently employs 10,000 people in China, 100 of whom are working full-time on the Olympic Games.

Douglas Ober, chief executive officer of Adams Express Co. says that China is one of the big drivers of growth, adding that GE will definitely profit from its exposure at the Games.

According to Lisa Delpy Neirotti, a professor of sports management at The George Washington University in Washington, D.C., being an Olympic sponsor will open many doors in China.

Some analysts say China should limit spending on infrastructure after the Olympics to prevent the economy from overheating. According to Henson, there are no signs to indicate that China's economic growth would drop off after the Games.