GE Aerospace to invest about $1 billion in US manufacturing this year

GE Aerospace said on Wednesday it would invest nearly $1 billion in its U.S. factories and supply chain in 2025, as it works to strengthen its manufacturing and increase the adoption of new technology and parts.

The aerospace giant's latest investment, which is almost double from last year, comes amid a strong travel environment that has led to robust demand for its engines and spare parts.

"Investing in manufacturing and innovation is more critical than ever for the future of our industry and the communities where we operate," CEO Larry Culp said.

GE also plans to hire 5,000 U.S. workers this year, including adding roles in manufacturing and engineering operations.

The company will spend $500 million from the total investment to bolster its engine manufacturing capacity and expand several key sites, especially those that support the making of its narrowbody CFM LEAP engine.

CFM International, GE's joint venture with France's Safran SA, is an engine supplier for Boeing's 737 MAX jetliners and competes with RTX's Pratt & Whitney to power Airbus' 320neo jets.

GE Aerospace will also invest more than $100 million to support its external suppliers, aiming to help them upgrade their tools, reduce defects in the parts they produce, and alleviate supply-chain constraints.