EnerSys closes Mexico facility, moves production to US

EnerSys

01/04/2025 22:02

April 1 (Reuters) - Energy services provider EnerSys ENS.N said on Tuesday it would close its flooded lead-acid battery manufacturing facility in Mexico and shift production to an existing plant in the United States.

The announcement comes as U.S. President Donald Trump prepares to impose reciprocal tariffs on countries that impose duties on U.S. goods, starting on April 2, which he has dubbed as a "Liberation Day".

The closure of its Monterrey facility in Mexico and the subsequent transition of production to its plant in Richmond, Kentucky would result in a pre-tax charge of about $20 million, which would be recorded in the first half of 2025.

The restructuring is expected to deliver an estimated pre-tax benefit of $19 million annually, beginning fiscal year 2027, EnerSys added.

"(The transition) will enable us to optimize our cost structure, maximize near-term IRC 45X tax benefits, and mitigate future risks associated with potential tariffs while reinforcing our commitment to strengthen domestic industrial security," said Shawn O'Connell, chief operating officer.

O'Connell is set to assume the role of chief executive officer in May.

 (Reporting by Vallari Srivastava in Bengaluru; Editing by Maju Samuel)

 ((Srivastava.Vallari@thomsonreuters.com;))