Partstat Partner News November 2021

By Logan Wamsley

GE Announces Split into Three Public Companies

In a recent statement, GE has officially announced that it will be broken up into three separate, publically-traded entities.
The three separate businesses will focus on aviation, healthcare, and energy. According to GE, the healthcare entity will be spun off to shareholders hopefully by early 2023, with the energy entity following shortly in early 2024.
“By creating three industry-leading, global public companies, each can benefit from greater focus, tailored capital allocation, and strategic flexibility to drive long-term growth and value for customers, investors and employees,” said CEO Larry Culp in a press release. “We are putting our technology expertise, leadership, and global reach to work to better serve our customers.”

The market reaction to the news has thus far been positive, with shares surging as high as 17% in premarket trading before regressing to about a 6% gain in early trading. The stock was already up more than 25% in 2021 before the spin-off announcement.
The total cost of the separation is estimated to be approximately $2 billion, with the aviation business retaining the GE name.

Honeywell Announces New Technology to Recycle More Plastics and Reduce the Carbon Footprint Of Recycled Products

Honeywell has just announced the creation of an exciting new kind of plastics recycling process. Called UpCycle, this technology expands the type of plastics capable of being recycled to 90%. Additionally, the technology is capable of producing recycled feedstock, which can be used to create plastics while using 57% fewer emissions than traditional plastics recycling.

To accomplish this, UpCycle uses molecular conversion, heat-activated decomposition, and contaminants management technology to convert waste plastic into “recycled polymer feedstock”. Utilizing this process, colored, flexible, multilayered packaging and polystyrene are now capable of being processed along with typical recyclable plastics.

“Plastics play an important role in our society, including expanding the shelf life of food and making vehicles lighter, which reduces their emissions. Unfortunately, only a fraction of plastics today can be successfully recycled,” said Vimal Kapur, president and chief executive officer of Honeywell Performance Materials and Technologies in a press release. “Honeywell’s UpCycle process helps fix this problem. By broadening the types of plastic that can be recycled, UpCycle will revolutionize the plastics economy and play a critical role in improving the sustainability of many of the products we use on a daily basis.”
According to some estimates, UpCycle combined with other emerging recycling technologies could collectively increase the amount of plastic waste being recycled by as much as 15 million tons by 2030.

IBM Enters Strategic Partnership With McDonald’s to Automate Drive-Thru Lanes

McDonald’s has announced a new partnership with IBM that will change drive-thru lanes forever, CNBC reports. Using IBM’s artificial intelligence technology, McDonald’s will in the future start implementing automated drive-thru lanes.

“In my mind, IBM is the ideal partner for McDonald’s given their expertise in building AI-powered customer care solutions and voice recognition,” McDonald’s CEO Chris Kempczinski said on the earnings call with analysts Wednesday.

IBM will acquire McD Tech Labs as part of the agreement, which was formerly known as Apprente before McDonald’s purchased the company in 2019. According to McDonald’s, fewer than 100 employees will leave McDonald’s to formally become employed by IBM.
McDonald’s has already tested the technology, implementing it in several drive-thrus around the Chicago area. According to Kempczinski, the test showed “substantial benefits” to customers and employees.

AMD Announces New Partnership With Meta

AMD has announced a new customer: Facebook’s newly minted parent company Meta.
Although full details of AMD’s win have yet to be released, AMD CEO Lisa Su said that more information will be provided at the Open Compute Project Summit. According to AMD, Meta selected its EPYC chips to power its data centers at its recent virtual Accelerated Data Center Premiere event Monday. The chip was a joint collaboration between the companies with the goal of developing a high-performance, power-efficient processor based on the 3rd Generation EPYC processor. Su says that Meta will be “a very significant piece” of AMD’s strategy moving forward.

Su has also said that its data center chip sales doubled on an annual basis in the most recent quarter, accounting for 20% of the company’s sales. The data center chips are part of AMD’s embedded, enterprise and semi-custom segment, which reported $1.9 billion in sales last quarter, up 69% year over year.