GE shakes the management of its production unit and calls retired leaders to help them

(Reuters) – General Electric Co (GE.N) shook up its struggling energy company on Monday, appointing a new CEO for gas energy and bringing back a long-time GE executive who has retired.

These changes mark a new step in the urgent efforts of GE's new chief executive, Larry Culp, to reduce the heavy debt and re-establish the profits of the 126-year-old Boston conglomerate. It also highlights the serious problems of GE's Power division.

"One of my top priorities is to position our companies for what they earn, starting with GE Power," Culp said in a statement.

GE stock rose 0.6% to $ 8.05 in a morning trading session.

John Rice, a 39-year-old GE veteran who once headed his energy unit, will now assume the role of Gas Power's chairman, reporting to Culp. Rice retired about a year ago after leading GE's global growth efforts as vice president under former CEO Jeff Immelt.

He will use GE's "knowledge of gas customers and management experience" to provide "mentorship" to leaders in the gas industry to "position this company and the team to ensure success". said GE.

Scott Strazik, CEO of GE Power's repair and maintenance business, will become CEO of Gas Power, overseeing both equipment sales and gas services.

Russell Stokes, the current CEO of GE Power, will become Chief Executive Officer of other energy-related activities, including nuclear and coal, steam, transmission systems and energy conversion.

Strazik and Stokes will also report to Culp, said GE.

Last month, GE announced the separation of the gas genset from the rest of its business so that the group could be given special attention by management.

GE Power's profits plummeted as gas turbine demand was well below expectations, leaving GE and rivals Siemens and Mitsubishi Hitachi Power Systems with excess capacity and lower sales.

GE Power recorded a loss of $ 631 million and wrote off a $ 22 billion gain in the third quarter, reflecting the gloomy outlook for future earnings.