EnerSys to Close Monterrey Plant, Shift Production to US

EnerSys announced a strategic restructuring that includes the closure of its flooded lead-acid battery manufacturing facility in Monterrey, Mexico, as part of an effort to optimize operations and transition toward higher-performance battery technologies. Production will be transferred to the company’s existing facility in Richmond, Kentucky.

The company expects to incur a pre-tax charge of approximately US$20 million as part of the transition, with US$7.6 million allocated to non-cash inventory and equipment write-offs. Cash charges of US$12.4 million will cover severance, decommissioning, cleanup, contractual releases, and legal expenses.

EnerSys will also invest US$4.5 million to expand flooded lead battery production at its facility in Bielsko-Biala, Poland, to support potential demand surges and provide additional capacity. The company estimates that the restructuring will generate an annual pre-tax benefit of US$19 million starting in fiscal year 2027.

Shawn O’Connell, EnerSys’ COO and incoming CEO, stated that the Monterrey plant closure and production shift will help the company optimize its cost structure, leverage US tax incentives, and mitigate potential future tariffs.

EnerSys affirmed its commitment to ensuring a smooth transition for employees, customers, and other stakeholders, maintaining service continuity throughout the process.