BANGOR – With electricity in short supply and the ability to produce it in high demand, GE Power Systems on Friday announced a $78 million expansion of its Bangor operation, adding 160 high-paying technical jobs to the area.

GE Power Systems president and CEO John Rice, flanked by Gov. Angus King and U.S. Sen. Susan Collins at an afternoon news conference, officially made public the plans to double production at some of the company’s Bangor facilities, which manufacture mechanical drive steam turbine generators used in power plants.

“There is an electricity shortage is some parts of the country, and the fact is it’s putting a premium on power generating capacity,” Rice said after the news conference, where he was also joined by U.S. Rep. John Baldacci and Mayor John Rohman. “Industries are looking closely at their needs, and we’re seeing an enormous increase in demand.”

The Bangor operation, which currently employs about 540 workers, has produced generation systems in recent months for the nearby Maine Independence Station natural gas plant in Veazie and International Paper in Bucksport.

Rice said GE Power Systems, a $15 billion subsidiary of General Electric, targeted Bangor for growth because of the high output from the employees there and the continuing support of state and local officials.

“We felt like we had a team of people here who had a demonstrated track record for improving and were really committed to continuing to improve,” said Rice, noting that the company has seen a four-fold increase in the demand for its steam turbines since 1998. “It made it an easy choice.”

The planned expansion also includes nearly 100,000 square feet of building space, including a new 73,000-square-foot structure off the Griffin Road. The new construction will bring the total space to more than 425,000 square feet on the facility’s campus near the Bangor International Airport.

Gov. King said the decision by one of the country’s most established corporations to invest in Bangor should put other companies on notice.

“This is the smartest company in the world and they don’t make investments like this because we’re nice guys,” King said. “The message is almost as important as the investment itself … it says that Maine is a hell of a good place to do business and to make things.”

General Electric has had a long relationship with Bangor, first opening its operation in 1968, shortly after the news of Dow Air Force Base’s departure.

The $78 million investment comprises $60 million in manufacturing equipment and $18 million in new construction, according to company officials.

The new jobs, hourly pay for which starts at between $17 and $19 with benefits, will bring the company’s payroll from $30 million to $44 million for 700 employees, GE officials said.

The 160 job openings, mainly for machinists and welders, come in addition to the 40 workers hired in January and 60 workers hired last year, officials said. One-third of the plant’s employees was trained locally at Eastern Maine Technical College.

Steve Kuring, the Bangor facility’s human resources manager, said the company would look to fill the new jobs by the end of the year.

GE Power Systems, headquartered in Atlanta, is one of the largest suppliers of power generation technology, energy services and management systems with 29,000 employees worldwide.