Global Thermoelectric Announces Downsizing

May 06, 2003 by Jeff Shepard

Global Thermoelectric Inc. (Calgary, Canada) announced that it has reduced its workforce in its fuel cell division by approximately one-third, or 47 employees, which will result in reduced research and development expenditures of approximately $5 million annually.

The company is retaining sufficient system capability to develop and assemble prototype and demonstration fuel cell systems, and will be in a position to deliver Global's next-generation, natural gas, fuel cell prototype, the Aurora, in 2003. The commercialization timeline for core solid-oxide fuel cell components such as the fuel cell membrane and fuel cell stack are unaffected by the announcement.

The announcement is consistent with Global's strategy to focus the company's efforts on its core technology development, while maintaining prototype system capability. The reduction in expenditure follows the company's previous cost-reduction initiative in November 2002.