US industrial giant General Electric (GE) will implement a large-scale business restructuring.

GE announced on November 9 that it plans to split the company into three independent listed companies, focusing on aviation, medical and energy businesses respectively.

Lawrence Culp, chairman and CEO of Ge, said that after being split into three independent listed companies, the aviation, medical and energy businesses will benefit from tailored capital allocation and flexible strategies.

According to the business restructuring plan, Ge will first spin off the medical sector, which is expected to be realized in early 2023. Ge will still retain a 19.9% stake in the medical sector.

GE’s existing renewable energy, power and Ge digital sectors will be merged into one business unit, focusing on energy transformation and seeking to complete the divestiture in early 2024.

After the above spin off, Ge will retain its aviation business and continue to use GE’s existing name. Karp will lead the business. At the age of 58, he will become the chairman and CEO of Ge in 2018.

Karp’s predecessor was John Flannery. Flannery became the number one of Ge in 2017, but was dismissed by the company 14 months after taking office.

Karp served as chairman and CEO of Danaher group from 2000 to 2014, an industrial instrument and equipment company founded in 1969. Under Karp’s administration, Danaher group also spun off and sold a number of businesses in order to simplify the company’s business structure.

GE has always been a star company in American industry, but it has fallen into a downturn in the past few years. It was once the company with the highest market value in the United States, reaching a peak of $594 billion in 2000. At present, its market value is less than $120 billion.

GE’s history can be traced back to the 1870s. Edison invented the first commercial incandescent lamp in 1879, and then set up Edison General Electric Company. In 1892, the company merged with Houston electric to become what is now Ge.

An important reason why GE has been in trouble in recent years is the merger and acquisition of Alstom Power and power grid in 2015. The deal, valued at $9.5 billion, is GE’s largest acquisition in the industrial sector.

The deal with Alstom proved to be a disaster for the company in the following years. Cleaner energy sources such as natural gas, photovoltaic and wind power continue to squeeze the market space of thermal power, which has hit Ge hard. Last year, GE announced its withdrawal from the coal power market and stopped providing thermal power equipment to new coal power plants.

In order to resolve the company’s high debt, GE has sold lighting business, railway, biopharmaceutical and oil and gas business. Due to the low share price, GE was excluded from the Dow Jones industrial index in 2018. GE has been a component of the Dow Jones industrial average for the past 110 years.

GE’s performance rebounded last year. In 2020, the company’s revenue was US $79.6 billion, a year-on-year decrease of 16%; The net profit attributable to the shareholders of the parent company was US $5.2 billion, turning losses into profits. In 2018 and 2019, Ge accumulated a loss of $28.2 billion.

GE’s share price has nearly doubled in the past year. After opening on November 9, the company’s share price fell slightly to $108.42.