Ultrasystems to Team With GE Subsidiary : 2 Firms to Develop Several Power Plants

Ultrasystems Inc. of Irvine said it is teaming with General Electric Credit Corp. in a joint venture to provide financing to develop several electric and steam-generating plants at a cost of $50 million each.

Agreements to develop three 55-megawatt industrial-use plants could be completed during Ultrasystems’ fiscal 1988, which ends Jan. 31, according to Philip J. Stevens, president, chairman and chief executive officer. The plants, powered by coal and gas, will take about two years to build.

“With GE Credit Corp., we don’t have to scramble for financing; we can spend our time developing projects,” Stevens said.

Ultrasystems develops, builds and operates generating plants for large industrial users and communities. The company, which reported fiscal 1987 revenues of $90.6 million, has developed 10 plants, six of which are operating, Stevens said.

In the venture, New York-based GECC, the financing subsidiary of General Electric Co. of Fairfield, Conn., will provide half of the financing for the projects, Stevens said. Ultrasystems will be responsible for the other half but can use outside financing sources.

Stevens wouldn’t disclose the budget or expected sales of the venture.

Neither company is new to joint ventures; George Schaefer, a vice president at GECC, said joint agreements make good investments and provide a chance to develop and sell GE products. Under the joint-venture deal, Ultrasystems said it can use and develop GE products in the generating plants.