Praxair Surface Technologies Inc., a wholly-owned subsidiary of Danbury, CT-based Praxair Inc. (NYSE: PX), and GE Aviation have entered into a definitive agreement to form a joint venture for the development, support and application of specialized coatings.
Praxair Surface Technologies will be the majority owner of the venture and will consolidate the results. GE Aviation will hold the remaining membership interests. The parties plan to begin operations during the second quarter of 2016.
When created, the joint-venture company will expand its footprint with a new coatings plant in the southeast United States, supplementing the services provided to GE from Praxair’s Indianapolis facility and other global operations. Additionally, under the agreement, Praxair Surface Technologies’ current scope of services provided to GE Aviation will expand. GE Aviation production volume will continue to grow due to a large backlog of commercial engine orders.