The American company Cummins will cease its hydrogen technology activities at its Belgian site in Westerlo, Flanders, putting around 100 jobs at risk.
Four years ago, Cummins had planned multimillion-dollar investments for the site, which currently employs 250 people.
By the end of 2024, 100 jobs had already been scrapped at Westerlo.
The company now plans to stop production at the facility, which assembles electrolysers used to generate hydrogen.
Cummins has announced another collective dismissal alongside the termination of all remaining production activities at the site. Negotiations are ongoing to establish a social plan for affected employees.
A full closure is not yet planned, as 80 positions will be retained to manage existing infrastructure.
The company, listed on the stock market, has ceased selling electrolysers, leading to an estimated loss of nearly half a billion dollars. It will only fulfil its current contractual obligations.
The difficulties are not limited to Cummins. Other Belgian players have also scaled back ambitions.
Agfa-Gevaert in Mortsel has struggled to generate sales for its Zirfon membranes used in electrolysers. Bekaert cut a quarter of jobs at its Wetteren plant producing electrolysis components, while John Cockerill in Liège was forced to raise fresh capital last year for its hydrogen division.
Cummins, which generated $33.7 billion in global revenue last year and a net profit of $2.8 billion, is also stopping electrolyser production at a recently opened facility in Guadalajara, Spain.
