After more than two decades, the entity known as GE Fanuc, a joint venture between General Electric and FANUC Ltd., is no more. On Monday, the two groups signed a separation agreement that will allow them to refocus investments on core competencies in order to grow their respective businesses.
GE Fanuc Automation Corp., established in 1986, combined GE’s control systems business and FANUC’s machine tool automation segment. In 2007, the shared entity branched out, adding GE’s embedded systems division and outlining an operations management software and service strategy that angled the organization away from products and components and toward turnkey solutions for process and discrete manufacturers. The new market spin resulted in a new moniker: GE Fanuc Intelligent Platforms.
With the dissolution, another name emerges: GE Intelligent Platforms, a business wholly owned by GE and focused on global delivery of software, services, embedded systems, and control systems. Japan-based FANUC retains its global computer numerical control (CNC) business. Neither company will receive any kind of buyout related to the separation, officials said.
The latest development is a direct result of the current economy, said a GE representative, who added that the decision to disband the organization is not an indication that the team could not deliver on its intended business goals.