LATHAM, N.Y. – Plug Power Inc. (PLUG ) , a leader in providing clean, reliable energy solutions, today announced a corporate restructuring to focus and align the company on its GenDrive(TM) business. In keeping with its primary objective to become a profitable enterprise, Plug Power is streamlining its resources and its workforce to harness commercial traction in the material handling market.
In a move to optimize efficiency and growth potential in the $4 billion North American material handling market, Plug Power is consolidating all operations to its Latham, New York headquarters. In doing so, 117 positions will be eliminated in its Canada, India and U.S. facilities. As a result of the restructuring, the annual cash burn rate is expected to decrease by $12 to 15 million, providing necessary capital to help accelerate market adoption.
“As with many new and innovative technologies, product adoption rates vary from market to market,” said CEO Andy Marsh. “With our experience we’ve seen a much faster adoption of fuel cell power in the material handling space, and as a result, we are focusing resources to accelerate customer acquisition in this important market. This is the right move for the material handling business and the right move for Plug Power.”
As stated in Plug Power’s most recent earnings call, Plug Power is evaluating the GenSys business model and expects to communicate any changes to its prime power strategy by the end of the second quarter. “Absent external market dynamics, the GenSys technology platform is sound and the product and system capabilities are strong,” continued Marsh. “Interest from commercial partners is high as we continue to explore opportunities to capitalize the strength of this business.”
Plug Power expects to ship 1,100 GenDrive units in 2010. Customers receiving products include United Natural Foods, Sysco, Wegmans, Central Grocers and others.
Further details about the restructuring will be provided in an 8-K filing with the SEC.