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EnerSys closes Mexico facility, moves production to US
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EnerSys closes Mexico facility, moves production to US
Apr 1, 2025 2:33 PM

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.

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