The restructuring is expected to reduce annual cash burn by $12 million to $15 million and bring as many as a dozen new jobs to Latham. The company will close offices in India, Canada, Tennessee and Ohio. In all, 117 positions will be eliminated.
Plug’s operations in India involved the manufacture and sale of GenSys, a fuel-cell system used to provide telecommunications service in remote locations. That office employed 35 to 40 people.
Focus has shifted to the company’s GenDrive fuel-cell system that powers forklifts and other warehouse equipment.
“This is the right move for the material handling business and the right move for Plug Power, ” said Andy Marsh, Plug’s CEO.
Reid Hislop, Plug’s vice president of marketing and investor relations, said the company is “getting maniacally focused on the material-handling space.”
Marsh said he expects the company to turn its first profit in 2012. He said the market is much better for the company’s GenDrive industrial-use fuel cell. The company is adjusting resources to commercialize GenDrive to meet demand.
Plug expects to ship 1,100 GenDrive units in 2010. Some of the product’s customers include United Natural Foods, Sysco, Wegmans and Central Grocers.
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