General Electric power chief identifies issue with new gas turbine

(Reuters) - General Electric Co has identified an "oxidation issue" that affects the lifespan of its new, larger H-class gas turbines, GE Power Chief Executive Russell Stokes said in a blog post on the company's LinkedIn page.

"Obviously, this was a frustrating development, for us, as well as for our customers," Stokes said in the blog first posted on Wednesday, adding that the company had implemented a fix that had the turbines working within targetted parameters.

"The minor adjustments that we need to make do not make the HA any less of a record setting turbine – they are meeting – and in many cases exceeding – their performance goals at every customer site today."

GE shares were down around 2 percent to $12.65 in trading before the bell on Thursday after J.P. Morgan analyst Stephen Tusa highlighted the blade failure in a note reducing his price target on the stock to $10 from $11. (Reporting by Ankit Ajmera in Bengaluru; editing by Patrick Graham)

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