April 1 (Reuters) - Energy services provider EnerSys ( ENS )
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 ( ENS ) 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.