05:04 PM EDT, 04/01/2025 (MT Newswires) -- EnerSys ( ENS ) said Tuesday it's closing a plant in Mexico while expanding US production as part of a manufacturing realignment to improve operational efficiency.

The company said it will will close its flooded lead-acid battery plant in Monterrey, Mexico, and move production to a plant in Richmond, Kentucky.

EnerSys ( ENS ) said it expects to incur a pre-tax charge of about $20 million under the plan, most of which will be recorded in H1.

The firm also said it will invest $4.5 million to boost flooded lead battery production capacity in its Bielsko-Biala facility in Poland.

The restructuring is expected to generate a pre-tax benefit of $19 million a year, starting in fiscal 2027, the company said.

"The closure...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 while reinforcing our commitment to strengthen domestic industrial security," said Chief Operating Officer Shawn O'Connell.