From what CFU have told us, my view is that the manufacturer has provided what it was asked to provide in the contract and the issue is CFU's, so CFU have to pay for the fix.
The problem is nothing to do with the manufacture of the furnace, it is to do with putting several fuel cell stacks in it and expecting it to cure them in the same way as putting one stack into a small furnace. The problem arises when stacks affect the heat of other stacks, they all interact with each other and cause hot spots or cool spots, leading to warping of the stack.
CFU 'think' they can solve this by putting a box around each stack to stop them interacting with each other. It is like having a load of small furnaces within a big one! No guarantee it will work either, otherwise, as it is such a simple thing to test, they would have done it before asking us for cash and got the cash at 10c+ instead of 6c!
This issue has been ongoing since the big furnaces were first used and it has taken this long to try and fix the issue, that is a fact. Note the words "acceptable quality standards" in the below announcements, this is the issue. The very last paragraph in the list tells us that the big furnaces are still holding back production, nothing to do with HC Stack.
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August 2010 To increase the volume of stacks the Company will need to use its larger furnaces already installed at the Heinsberg plant. CFCL is currently working with the supplier of the large volume furnaces to ensure the furnaces will produce fuel cell stacks in larger volumes at acceptable quality standards
April 2011 "As reported in previous updates, in order to further increase the volume of fuel cell stack production the Company intends to use larger furnaces already installed at the Heinsberg plant. During the quarter the Company worked with the furnace supplier to identify changes needed to ensure the furnaces will produce fuel cell stacks in larger volumes at acceptable quality standards. The parties have identified several ways of optimising the furnace operation, which the Company intends to implement during the June and September quarters"
July 2011 As reported in previous updates, in order to further increase the volume of fuel cell stack production the Company intends to use larger furnaces already installed at the Heinsberg plant. During the June quarter the Company has worked with the furnace supplier to finalise changes needed to ensure the furnaces will produce fuel cell stacks in larger volumes at acceptable quality standards. The Company is implementing these changes with the supplier.
April 2012 (fixes completed in June 2011?, NOPE, it's July 2012 now) The Company continues to manufacture fuel cell stacks and complete BlueGen units at its manufacturing plant in Heinsberg, Germany. During the quarter the Company recruited additional staff to continue to increase production volumes. The Company and its supplier are also continuing work to increase production volumes of the large furnaces at the site. This work is expected to be completed in the June quarter. In the meantime the smaller furnaces at the site continue to meet our requirements for fuel cell stacks.
July 2012 (now it's by end of August!) During the June quarter the Company and its furnace supplier continued work to bring a large furnace into production at its volume manufacturing plant in Germany. This work is now expected to be finished in August
We are currently making an average of six fuel cell stacks per week in small furnaces and five BlueGen units per week at our manufacturing plant in Heinsberg, Germany. During the June quarter we continued to work with our furnace supplier to bring a large furnace into production. Progress has been made but the expected completion date has slipped from June to August.
CFU Price at posting:
5.9¢ Sentiment: LT Sell Disclosure: Not Held
