The decision comes as the US Congress failed to reauthorize the Export-Import Bank in July to the export financing entity in the country.
GE said this would affect its $11bn worth of projects for which it is preparing bids.
The company plans to build $265m factory in an undisclosed location in Canada, which will have manufacturing capacity for multiple business lines including power and water, oil and gas and transportation.
Expected to create 350 jobs in first phase, the new facility will also have back-up capacity to manufacture diesel engine components for GE Transportation.
The Wisconsin facility, which currently employs 350 people, develop gas engines for compression, mechanical drive and power generation applications.
Planned to be completed in 20 months, the new factory is intended to optimize efficiency and streamline production using data, analytics and software.
It will also have an option for capacity expansion 8in future and also support manufacturing requirements for other GE businesses.
GE seeks to access additional support from the country’s export credit agency, Export Development Canada (EDC), through the new facility.
GE vice-chairman John Rice said: "We believe in American manufacturing, but our customers in many cases require ECA financing for us to bid on projects. Without it, we cannot compete and our customers may be forced to select other providers.
"EDC joins a growing list of export credit agencies interested in supporting GE’s global business operations and customer base."
Earlier in this year, GE proposed its plan to create move production and create 500 jobs in the company’s power and water business in France, Hungary and China in a bid to secure export financing in these countries for projects using 50Hz heavy duty and aeroderivative gas turbines.
Recently, GE signed a memorandum of understanding with UK Export Finance (UKEF), the UK’s export credit agency to support up to 1,000 new jobs in the UK energy sector.
