READING, PA — EnerSys (NYSE: ENS) has unveiled plans for a strategic realignment of its manufacturing operations to better align with market demand for its advanced maintenance-free battery technologies, including Thin Plate Pure Lead (TPPL) and lithium-ion. The shift will involve the closure of its flooded lead-acid battery manufacturing facility in Monterrey, Mexico, with production transitioning to an existing plant in Richmond, Kentucky.
The restructuring is expected to generate a one-time pre-tax charge of $20 million, primarily recorded in the first half of 2025. This includes $7.6 million in non-cash charges for inventory and equipment write-offs, and $12.4 million in cash charges for severance, decommissioning, and legal costs. Additionally, the company will invest $4.5 million to expand production at its Bielsko-Biala facility in Poland, ensuring added capacity for Europe and increased operational flexibility.
EnerSys anticipates the move will deliver $19 million in annual pre-tax benefits by fiscal 2027, alongside enhanced cost efficiency and improved product availability. According to Chief Operating Officer Shawn O’Connell, who will step into the CEO role in May, the changes are a proactive step to capitalize on growing demand for high-performance, low-maintenance energy solutions. “The closure of our Monterrey facility and the transition of production to Richmond, KY will enable us to optimize our cost structure, maximize near-term IRC 45X tax benefits, and mitigate future risks associated with potential tariffs.”
By focusing on advanced technologies and domestic manufacturing, the company aims to strengthen its competitive position while supporting long-term growth in a rapidly evolving energy market.
For the latest news on everything happening in Chester County and the surrounding area, be sure to follow MyChesCo on Google News and MSN.