General Electric Enters Italy's Oil & Gas Sector With A $600 Million Investment

General Electric Company GE announced on Sunday it has entered into a new Memorandum of Understanding with various Italian entities that will lead to the investment of $600 million over the next five years in the country.

According to General Electric's press release, the investments will focus on research, development and technological innovation in the Oil & Gas sector. The Memorandum of Understanding also establishes a "centre of global excellence" in Tuscany for new-generation gas turbines and centrifugal compressors.

The project aims at increasing Italian production by 50% and increase company revenue by $1.7 billion in five years.

General Electric added that a separate Memorandum of Understanding has been signed in the last weeks. The parties include Avio Aero, General Electric's Aviation business, and the Italian Minister of Economic Development.

"GE has been in Italy for nearly 100 years and today's milestone underlines our strong on-going commitment to investing and growing our business here," said Jeff Immelt, Chairman and CEO of GE. "Today's MoU provides a framework to further enhance the skills of the local workforce and boost research and development in cutting edge oil & gas technology made in Italy for the world."

Shares of General Electric were trading lower by 0.57 percent at $28.89 early Monday morning.