GE picks Dayton area for R&D center

General Electric Co. said it has chosen the Dayton area for a $50 million GE center that will host research and development of advanced electric power technologies for military and civilian hybrid electric vehicles and additional uses in aircraft and ships.

The companys GE Aviation unit said it wont announce the precise location for the Electrical Power Integrated Systems Research & Development Center until late this year, after site research and final business reviews.

The center would begin operating in 2012. It will focus on advanced energy management including electric power generation, control and distribution, conversion and energy storage equipment, said Vic Bonneau, the Vandaliabased president of electric power for GE Aviation Systems.

The center will be directed at several markets, including on and offhighway hybrid and electric vehicles, more electric aircraft and marine applications, GE Aviation said in announcing the plan.

The center also will focus on developing electrification of naval surface ships, GE said.

The announcement is a major boost for the states efforts to increase the expertise and prestige of aeronautical R&D in southwest Ohio. The state sweetened its pitch to GE by promising a $7.6 million capital grant from the states technologyboosting Third Frontier program in support of the center. GE had considered alternate sites at its current operations in Michigan, Kentucky and England.

In addition to its Electrical Power Systems business in Vandalia, GE Aviations headquarters plant for producing commercial and military jet engines is in the Cincinnati suburb of Evendale, along Interstate 75. The University of Dayton Research Institute, which does fuels and combustion research for the Air Force, will serve as fiscal agent for the states Third Frontier grant to GE.

GE has told the state it would commit $50.75 million to the electric power R&D center. It initially would employ 10 to 15 people, but that eventually could increase to 100 to 300 people if the companys Electrical Power Systems unit approaches its goal of doubling annual sales to $700 million by 2019.

With the Air Force Research Laboratory as a catalyst, the Dayton region has developed expertise in propulsion and sensors R&D and is striving to build fluency in support and technology development for unmanned aircraft. In September, Ohio Gov. Ted Strickland designated Dayton as the states hub of aerospace innovation, clearing the way for state funding to support development of aerospace business and R&D in the region.