Plug Power (PLUG). signs contract with Golden State Foods

Plug Power Inc. is engaged in designing and manufacturing of fuel cell systems which is used to replace conventional batteries in equipment powered by electricity. The company officials along with its sales team visited Golden State Foods’ company the previous year and now they have won the contract with the global food supplier. Plug power is quite content after signing its first contract with the global food distributor. Plug Power was the regular provider and distributor of 39 cells to Golden State Foods which were known as GenDrive units. 

BizJournal reported that “Golden State Foods, an international fast-food supplier for companies including McDonald's, Starbucks and Taco Bell, will use Plug Power fuel cells to power forklifts at its 158,300-square-foot distribution center in Illinois. The deal includes 5-years of on-site maintenance.” Hence this seems to be a long term deal which will be beneficial for both of the companies. It is believed that the contract between Plug Power and Golden State Food is half the size of Power Plug’s other contracts with CVS, Mercedes-Benz, Bridgestone, Procter & Gamble and Kroger. 

Plug Power Inc. manufactures hydrogen cells which powers the forklifts. These forklifts are used by different companies in their large warehouses as well as distribution centers. The fuel cells are sold as an alternative to lead acid batteries. The company says “Plug Power secured the largest deal in its 17-year history in February when Wal-Mart ordered 1,740 fuel cell units for its warehouses. This added to the 535 Plug fuel cells Wal-Mart previously had purchased. The retailer has since expanded the contract to include six hydrogen refueling stations.”

However, the deal between Plug Power and Golden State Foods is not the largest in company’s history but it shows that the products of Plug Power Inc. are applicable in smaller environment as well as smaller applications.

The CEO of the company, Andy Marsh said “This contract may not be as big as Wal-Mart’s, but as they grow we hope to grow with them. Every customer we bring on board provides additional validation for the offering we are making to the market.” 

Source: http://www.bidnessetc.com/company/plug/