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Saturday, November 09, 2002

By Dan Fitzpatrick, Post-Gazette Staff Writer

Siemens Westinghouse Power Corp., which made big news in 2001 by announcing a $122 million fuel cell factory in Munhall and promising 175 to as many as 500 jobs, is pushing back plans for occupying the plant and is backing off initial job predictions.

The original plan was to move into the new 180,000-square-foot building this year at The Waterfront, start manufacturing work in 2003 and start selling the plant's rail-car-sized fuel cells in 2004. Fuel cells, which squeeze electricity from natural gas, are designed as cleaner, more efficient energy sources for industrial parks, hospitals, office buildings and military installations.

Yesterday, company spokeswoman Melanie Forbrick said that because of the economic downturn, Siemens now plans to move less than a dozen people into the building next year to get the factory ready, but won't start manufacturing work until 2004. Products developed at the plant would not be sold until 2005 or 2006.

"What we are going to do is remain in the pre-commercialization phase for longer than we originally anticipated, with the economic situation in the U.S. spilling over into the worldwide market," Forbrick said. The goal, she added, is to "take advantage of that downturn and perfect the technology" at the Munhall plant.

When asked about the 175 to 500 jobs, Forbrick said, "We'll have to wait and see what happens in the market." The numbers could be the same, she said, but may take longer to materialize. "It's too early to speculate."

Could Siemens, which owns the nearly completed building in Munhall, abandon the plant altogether? "Not at this point," Forbrick said. "The market would have to continue to change. That is not in our plans at this point."