Jabil signs MoU with Ceramic Fuel Cells

Under the MoU, CFCL and Jabil will work together towards scaling up the manufacturing of CFCL’s Gennex fuel cell module and BlueGen electricity generation product. Brendan Dow, Managing Director of Ceramic Fuel Cells, said: “Over the past year our order book has grown from 50 units to 500 units and we need to plan ahead for much larger volumes in the coming years. Working with an expert contract manufacturer will help us to increase our volumes and reduce our unit costs much faster than trying to do it all ourselves.” The first phase of co-operation is for CFCL to source selected components from Jabil's manufacturing operations and is expected to begin in early 2012. The second phase is for CFCL to source major sub-assemblies from Jabil. The final phase is for Jabil to assemble finished products as a contract manufacturer for CFCL. Jabil’s manufacturing services to CFCL are expected to grow over time to match CFCL’s increasing sales volumes. The details of the particular services in each phase will be set out in a formal supply agreement to be signed at the time. CFCL has built and is operating a volume manufacturing plant in Germany, where CFCL makes fuel cell stacks and assembles complete Gennex fuel cell modules and BlueGen products. The company will retain control of fuel cell stack manufacturing and all related intellectual property into the future, whilst progressively outsourcing the manufacturing and supply of components, sub-assemblies and ultimately the mass manufactured BlueGen product.