EnerSys announces strategic manufacturing restructuring

EnerSys (ENS) “announced a strategic manufacturing realignment to enhance operational efficiency and align with the accelerating market shift toward its proprietary higher performance maintenance-free battery technologies such as Thin Plate Pure Lead and lithium-ion. As part of this initiative, EnerSys will close its flooded lead-acid battery manufacturing facility in Monterrey, Mexico, and transition production to its existing plant in Richmond, Kentucky. EnerSys expects to incur a pre-tax charge of approximately $20 million under this plan when completed, the majority of which is expected to be recorded in the first half of calendar year 2025, of which $7.6 million is expected to be a non-cash charge from inventory and equipment write-offs. Cash charges of $12.4 million include severance, decommissioning and cleanup related to the facility, contractual releases and legal expenses. In conjunction, EnerSys will invest $4.5 million to expand flooded lead battery production capacity in its Bielsko-Biala, Poland facility, providing incremental capacity in Europe to support any demand surges and redundant capacity for flexibility. The restructuring is expected to deliver an estimated pre-tax benefit of $19 million annually, beginning fiscal year 2027, while ensuring continued product availability and customer support.”