Canadian fuel cell specialist Ballard announce corporate restructuring to due slowdown in hydrogen business
“We expect our restructuring measures to impact our global operations, yielding annualized total operating expense savings in excess of 30%, with a substantial part of the annualized savings being realized in 2025”, said Randy MacEwen, Ballard President and CEO.
Major fuel cell stack producer Ballard has recently announced the need to restructure part of the internal business, “in order to maintain balance sheet strength amid a slowdown in hydrogen infrastructure development and delayed fuel cell adoption”, as stated in an official note.
“As discussed during our recent earnings call, in the context of a challenging macroeconomic and geopolitical outlook and amid protracted policy uncertainty, we see a multi-year push-out of the availability of low-cost, low carbon hydrogen and hydrogen refueling infrastructure. As this delay represents a significant headwind to our corporate growth plan, we are implementing a cost restructuring to moderate our investment intensity and pacing to better align with delayed market adoption,” said Randy MacEwen, Ballard President and CEO. “We expect our restructuring measures to impact our global operations, yielding annualized total operating expense savings in excess of 30%, with a substantial part of the annualized savings being realized in 2025.”
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Why is Ballard restructuring its activity?
The scope of reduction measures include a reduction in workforce, a rationalization in product development programs, operational consolidation, reduction in capital expenditures, and certain working capital improvement initiatives. However, cost reduction measures are not expected to impact product delivery. Ballard is actively cooperating with Ford Trucks in view of the first Blue Oval fuel cell truck. In addition, Ballard is a stakeholder in the Quantron business.
“With continued challenges in the China fuel cell market and underperformance of the Weichai Ballard joint venture, we are also conducting a strategic review of our China strategy”, MacEwen added.
New COO and CFO announced
“As part of the restructuring, Paul Dobson and Mark Biznek will be departing as our Chief Financial Officer and Chief Operating Officer, respectively. Paul will be succeeded by Kate Igbalode as our new CFO effective immediately. Mark will be succeeded by Lee Sweetland as our new COO effective at the end of 2024. Paul and Mark will support their respective successors in an orderly transition. We thank both Paul and Mark for their dedication and valued service to Ballard,” concluded CEO MacEwen.
