Publication date: 29-October-2003 
Source:Waterbury Republican-American

Until recently, the Danbury-based company employed about 300 people, including
about 130 to make fuel cell power plants at Technology Park Drive in Torrington.

FuelCell spokesman Steven P. Eschbach would only describe the move as a "small,
temporary reduction" in the work force.

"It's a very, very small number," Eschbach said. "We do have production going
on. We're still manufacturing fuel cells. As orders come in, we hope that these
temporary employees will come back."

Eschbach would not say how many people are still employed at the
65,000-square-foot Torrington plant, which opened in early 2001 with just 55
people.

As it increased employment -- FuelCell added 60 jobs in Torrington last year
alone -- the company also invested heavily in equipment at the plant, which can
make enough fuel cell components annually to produce about 50 megawatts of
electricity. There are about 1,000 kilowatts in a megawatt, which is enough
electricity to power about 500 homes.

Fuel cells convert fuels such as natural gas into electricity and operate like
large batteries. They run more efficiently than conventional power plants and
without combustion, so the primary byproducts are water and heat. They can be as
small as a filing cabinet or as large as a trailer.

The recent furloughs follow a similar move in July, when the company furloughed
about 7 percent, or about 24 people, from its payroll at the time of roughly
330. Those furloughed employees have not yet returned to work.

In May, the company cut between 90 and 100 jobs as part of a plan to reduce
payroll 20 percent across the board. From 45 to 50 positions in Danbury and
Torrington each were cut as part of that move.

Some companies are developing fuel cells to run automobiles and homes, but
FuelCell is developing its power plants for hospitals, schools, apartment
buildings and other commercial or industrial buildings.

Company shareholders are expected to vote Friday on the acquisition of a
Canadian company that develops power plants for smaller, mobile and back-up
power applications.

Market adoption of fuel cell technology has been slower than expected, however,
and although recent signs point to increased business spending, many companies
have shown a reluctance to make significant capital investments.

As such, FuelCell executives have consistently said they would manage production
capabilities with market demand.

"We're still managing our business in accordance with order flow," Eschbach
said. "As additional orders pick up, we'll be trying to bring these people back
on board."
 

By David A. Smith