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EnerSys moves production from Mexico to the US

EnerSys moves production from Mexico to the US

EnerSys, a provider of energy services, announced on Tuesday that it will close its lead-acid manufacturing plant in Mexico due to flooding and move production to a US facility.

The announcement coincides with the preparations of U.S. president Donald Trump to impose reciprocal duties on countries that impose tariffs on U.S. products, beginning on April 2, a day he has called "Liberation Day".

A pre-tax charge in the amount of $20 million would be incurred in the first half 2025 due to the closure of the Monterrey plant in Mexico, and the subsequent transfer of production from that facility to the Richmond, Kentucky, plant.

EnerSys said that the restructuring will result in an estimated annual pre-tax profit of $19,000,000, starting with fiscal year 2027.

Shawn O'Connell said, "The transition will allow us to optimize our costs structure, maximize IRC 45X near-term tax benefits, mitigate future risks associated to potential tariffs, while strengthening our commitment to improve domestic industrial security."

O'Connell will assume the role as chief executive officer by May. Reporting by Vallari Shrivastava from Bengaluru, editing by Maju Sam

(source: Reuters)