In a sudden move, U.S.-based hydrogen fuel cell and truck manufacturer Hyzon Motors has announced the closure of its truck production facility in Winschoten, Netherlands. This comes less than a year after the company assumed full control over its European operations.
In an official statement, Hyzon noted that it has “Been evaluating its global operations, and transitioning its international regions to the third-party assembly model operated in the US. As a result of these strategic initiatives, we are shifting our European operations and will share updates when available.”
Initially opened in 2021, the Winschoten facility had the capability to produce 500 trucks annually and had announced plans to double this capacity by 2022. However, the company now intends to downsize the plant’s operations to a research and engineering facility. This decision has been met with skepticism from labor unions who question the long-term viability of even this limited operation.
“The plant was the European base for Hyzon,” says Masja Zwart, regional director for FNV, the Netherlands’ largest trade union. “They will close down the production in Europe and only maintain the research and engineering facility,” she added. Regarding the future of the facility in Winschoten, Zwart said, “The viability of that remains to be seen, but that’s my opinion. We are negotiating a severance plan for the lay-off of 20-35 workers.”
Zwart mentioned that Hyzon’s decision to alter its European strategy came for “several reasons,” but did not offer specific details.
The closure coincides with Hyzon’s ongoing cost-cutting measures, a strategic shift involving the divestment of assets and outsourcing truck assembly. This comes in the wake of market conditions that nearly led to the company’s delisting from the Nasdaq exchange.
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