Not in Fairfield County?
August 20, 2019Cart

Business

by Fairfield County Business Journal
by FCBJ

FuelCell Energy announces ‘amicable’ settlement with South Korean firm

POSCO Energy’s massive fuel cell power station in Pyeongtaek, South Korea.

Danbury’s FuelCell Energy has settled an arbitration case with POSCO Energy, the largest private energy producer in South Korea, for an undisclosed amount.

FuelCell filed a form 8K with the SEC announcing the settlement, which it called “amicable.”

At issue was the deterioration of negotiations between the two companies over ways to attract investors for the restructuring of POSCO’s fuel cell business in South Korea, as well as several defects being found in a key component of the Danbury firm’s fuel cell generator. Last year, POSCO announced it would terminate FuelCell’s South Korean sales rights, setting off the arbitration.

The two companies’ relationship dates back to 2007, when POSCO invested $84 million in FuelCell and acquired the license for its MCFC technology in South Korea.

FuelCell has been dogged by financial troubles of late – Nasdaq has threatened to delist it if its stock price continued to finish under $1 – and in April it announced it was cutting 135 jobs, which it said would result in annual payroll savings of $11.5 million.