Plug Power Inc (NASDAQ:PLUG) announced today that it is creating a joint venture with South Korean steel supplier Hyundai HYSCO (KRX:010520), which supplies steel to Hyundai Motor Co (KRX:005380). Plug Power said they would be working on developing and then selling hydrogen fuel cells in Asia. The company said they are still finalizing all of the details on the agreement but plan to have it complete no later than July 31.
Plug Power reveals MOU
The agreement between Plug Power Inc (NASDAQ:PLUG) and Hyundai HYSCO (KRX:010520) will take the form of a non-binding memorandum of understanding. The two companies will use Hysco’s “advanced stack and plate technology” to create the fuel cells. Currently they are discussing a five-year venture.
“This highly anticipated joint venture with Hysco will enable Plug Power to broaden its reach into the Asian market, putting us well on our way toward global market expansion,” said Andy Marsh, CEO of Plug Power, in a statement. “The positive impact on our bottom line from fuel cell sales in the region in 2015 and beyond will play a significant role in our achievement of profitability.”
Plug Power’s conference call fails to impress
The joint venture is just part of Plug Power Inc (NASDAQ:PLUG)’s focus on international expansion. The company held a conference call earlier today to discuss its plans. Plug Power has said it completed nine deals for its GenKey hydrogen fuel system, at a value of $80 million in bookings. The company was also expected to talk about its acquisition of ReliOn, which develops hydrogen fuel cell stack technology.
Shares of Plug Power Inc (NASDAQ:PLUG) were initially up by 3.5% ahead of this morning’s conference call. However, Marsh’s comments apparently failed to keep investors confident in the company’s future. Nonetheless, the fuel cell provider has still posted massive gains in share price already this year, as it has increased by more than 350% since the beginning of the year.