Plug Power Inc (NASDAQ:PLUG) shares jumped more than 5% yesterday amid speculations that New York State Governor Andrew Cuomo would make a major announcement at the company’s Latham facility. However, Cuomo’s news conference was more political in nature. During his visit, he told Plug Power employees about the positive impact the recent zero percent manufacturing tax in the New York state.
Investors were expecting a major announcement. Plug Power manufactures 100% of its GenDrive and GenFuel products at its Latham manufacturing facility. The fuel cell technology company said the economic environment created by Gov. Cuomo to support manufacturing has helped the company bring more jobs to the state.
Plug Power, Ballard enter a long-term deal
In another development, Ballard Power Systems Inc. (NASDAQ:BLDP) has signed a new long-term deal to supply fuel cell stacks for Plug Power’s GenDrive. With the new agreement, Ballard Power will remain a leading supplier to Plug Power. The new deal runs through the end of 2017, and there is a provision for two 1-year extensions.
Notably, Plug Power acquired ReliOn earlier this year to make its own fuel cell stacks and lower its dependence on Ballard Power. ReliOn already has an impressive client list including Sprint, Verizon and AT&T. In recent months, Plug Power has received orders from Wal-Mart, Mercedes-Benz, Procter & Gamble, CVS Pharmacy and others. They also helped Ballard Power Systems increase its fuel cell stack revenue from material handling by a whopping 177%.
Plug Power making significant strides in the automobile industry
Plug Power expects total orders to surpass $150 million by the end of 2014. By the end of September 2014, the company had shipped over 6,000 GenDrive fuel cells in North America. A few days ago, Plug Power published a bullish blog post reiterating its progress in the automobile industry. Besides Mercedes-Benz, BMW, Honda and Volkswagen are also using its fuel cell systems.
Plug Power shares fell 2.42% to $4.44 in early trading session Thursday. Currently, 22.3% of its total outstanding shares are held short.
