When a multinational corporation opens a manufacturing facility in an emerging market, it has the potential to make a positive impact on the surrounding community. With a presence in these markets, responsible companies invest in the development of employees, create positive relationships with local and state government, increase environmental, health and safety standards, and strengthen the standards of the entire supply chain.

GE takes its responsibilities seriously everywhere it opens a facility. GE’s involvement in Petrópolis, Brazil (a small town near Rio de Janeiro), with its GE Celma facility is an example of the actions a company can take to make a beneficial impact in emerging markets. GE Celma is an aircraft engine facility that provides engine services to airline customers in Latin America, the United States and Europe. GE initially invested in Celma as a minority shareholder and subsequently purchased the company, making it an integral member of GE’s global aircraft engine maintenance, repair and overhaul system. In this way, GE Celma could expand its services to become a stronger international competitor, providing responsive, world-class customer solutions.

The GE Celma facility is differentiated by its leadership, management systems, innovative practices and strong core group of employees who are proud members of the local community. Its plant leaders have established a chain of resources and inputs that creates value not only for GE, but for its customers, stakeholders, business partners, government entities and the local economy.

Community And Economic Development In Petrópolis

In the town of Petrópolis and beyond, GE plays an important role in community and economic development. As the GE Celma plant has grown, so has the city’s capacity to play a role in technology development. This has led to an influx of talented individuals who want to work at the best companies. GE Celma has made substantial investments in both training and technology, with a labor force in Brazil that is flexible and has a positive attitude toward re-learning and education.

Through the employee education projects that GE supports, GE Celma’s impact on the region has helped the plant win more business, gain more customers and assist the town’s growth in a sustainable way. The local industry council of Rio de Janeiro continues to recognize GE for raising the bar when it comes to well-trained, top-level professionals. The plant’s supportive relationship with the local technical college has resulted in significant growth opportunities for employees, as well as operational improvements and cost savings for the business. Improved educational opportunities translate to a work force that is more innovative and productive.

GE Celma’s investment in job-skill training and orientation programs is done in partnership with local organizations, as opposed to simply making social investments. For example, Brazilian law requires companies to hire a certain number of individuals who are disabled. In order to meet this requirement, GE Celma has created a program to prepare these employees to take on future job assignments. The program was created through a partnership with the technical school and the community where those with disabilities were trained, and the most qualified are hired.

Working With The Brazillian Government For Sustainability

Brazil’s national policies focus on encouraging corporate social responsibility. Brazilian-owned banks and banking institutions are given preference in approving financial packages for those companies that can demonstrate socially responsible management practices. The GE Celma plant has continued to work with the local government to create innovative practices that will help the entire region.

As the largest services exporter in Brazil, and one of the top taxpayers in the region, GE Celma has worked with the government to increase the speed of import and export processes and encourage cost reductions. These actions have helped foster Brazil’s competitiveness in the global marketplace, where there is often a heavy tax on exports and where speed to market is essential. Working with the local industry council, a paperless electronic system was implemented that is able to clear goods 24 hours a day, seven days a week. GE Celma was the first aviation and services business to qualify for and be permitted to practice this paperless process in Brazil, which has had a positive impact on regional economic development. At the city level, GE Celma was able to get a tax benefit in 2007, including local reductions in the labor tax rate applicable to any incremental work brought to the company. Since then, GE Celma has almost doubled its business volume.

Environmental, Health And Safety Leadership

GE has gained the trust of local government and earned those leaders’ respect as a valued industry partner. A majority of GE Celma’s regulatory considerations relate to environmental compliance and are addressed at the local level. GE has been very forthcoming on environmental issues and has even engaged the government and the environmental agency on past conditions at the GE Celma site, which the government was unaware of prior to GE taking possession of the property.

Before purchasing Celma, as part of the due diligence process, GE found groundwater contamination that could potentially affect its neighbors. The GE team openly discussed this issue with local authorities, and since then, site remediation has been ongoing. After the acquisition, a new wastewater treatment plant was constructed. In addition, there was a reengineering of chemical process wastewater, which resulted in the development of a closed-loop system that reduces wastewater discharge and is more energy efficient.

The proactive steps taken by GE after its acquisition of GE Celma were well received by government authorities, which fully support GE’s environmental consciousness. The plant is also proud of its best practices in the reduction of greenhouse gas emissions. Significant emphasis is placed on operational efficiency and hazardous waste disposal that have environmental targets that are more stringent than local environmental regulations.

Sustainability of the global supply chain is supported through technology and operations at GE Celma. As one technology example, GE Celma installs energy-efficient CFM56-3 Advanced Upgrades for a number of customers during overhaul. This engine upgrade is part of GE’s ecomagination product portfolio — the company’s commitment to develop new, cost-effective technologies that enhance customer environmental and operating performance.

And on the shop floor, leaders created a cost saving approach for reusing equipment. When GE Celma needed a high-speed grinder, employees surveyed excess capacity at GE sites around the world and acquired their grinder from a GE facility in the United States. That innovative approach resulted in products and equipment being refurbished and moved from one location to another, which was far more efficient than purchasing new equipment.

Safety is always the first priority at the plant. As a member of the local industry association, GE Celma received Global Star certification five years ago, which recognizes the site’s ongoing record of safety performance. The plant has recordable rates that are 10 percent below the industry standard.

GE continues to engage in inclusive conversations with key audiences on personnel, finance and logistics issues, along with environmental initiatives related to clean technology, energy efficiency and global competitiveness. By embracing corporate social responsibility at all levels, GE Celma will continue to stand out as an example of what can be done by bringing employees, the community and other important stakeholders together in what promises to be a lasting partnership.

Employee Development

The style of management at the shop supports employee participation. As one of only a few large industries in town, the plant operates in a way that provides employees opportunities to contribute and grow, with a focus on developing careers. Employees are proud of their work to meet customer needs by operating one of the best aircraft engine overhaul shops in GE.

The level of education among employees is high. GE Celma is fully engaged with the technical schools in Petrópolis. The plant has collaborated in the development of a technical school in town that is open to GE Celma employees as well as any member of the community who would like to attend.

To further develop employees, GE Celma initiated a mentoring program, launched in 2008. This program focuses on the company’s growth and sustainability goals, engaging many employees with more than 10 years of aviation experience and 25 percent with more than 20 years service. Based on survey results, 97 percent of the mentees found this to be a positive development for their technical and professional careers. This initiative has now been expanded to newly recruited engineers and leaders.

It is common for three generations of the same family to work at the GE Celma plant. When people do leave, it is frequently for another GE assignment with greater responsibility.

GE is committed to preparing the workforce for the future through development of its Technical Talent Acceleration Project, which targets GE Celma’s leadership and engineering teams, as well as the technical staff. Initiated in 2007, teams of two people each quarter spend two to three weeks at other sites, suppliers and customers. When participants return, they share experiences with other members of their group and implement projects that support the business.

Employee communication and engagement translate into improved performance. In addition to internal newsletters and a communication board, GE Celma conducts quarterly face-to-face business reviews. Also, the entire engineering and leadership teams are included in meetings, along with opinion and thought leaders. Small group discussions with the local industry association also occur on a regular basis. These ongoing communications foster honest and supportive dialogue for constant feedback on the business climate.