Johnson Controls agrees to withdraw lead-processing operations from its Shanghai battery plant The company will continue to label and prepare batteries for shipping from the facility
SHANGHAI, Sept. 24, 2012 /PRNewswire/ -- Johnson Controls, Inc., the world's leading supplier of automotive batteries, will remove lead-processing operations capabilities from its Kangqiao battery plant in response to the Shanghai Municipal government's initiative to remove lead manufacturing from the community. The company will discontinue its attempts to resume any lead-processing production activities in the facility, and will remove associated equipment. Storage, labeling, prepping, and shipping of batteries manufactured in other facilities will continue.
"China is an important market and Johnson Controls is committed to supporting our customers in the China market," said Alex Molinaroli, president, Johnson Controls Power Solutions. 'While we are disappointed with the local government's position, and we stand by our environmental performance, we will continue to transparently work with governments and the industry to address environmental requirements. We are committed to assisting in the establishment of responsible performance standards across the industry while responding to the needs of our customers, our employees and the community."
The operational change requires the company to reduce the size of the workforce.
"Our employees are extremely important to us and we are doing everything we can to help those who are impacted by the change in operations," said Molinaroli. "We are working with interested employees to determine the possibility to transfer to other Johnson Controls facilities. We are offering severance packages that are well above legal requirements, and we also are providing outplacement and counseling services," said Molinaroli.
Customers will not be impacted by this operational decision, as lead-processing manufacturing from the Kangqiao plant has already been redirected to other Johnson Controls facilities in China.
About Johnson Controls
Johnson Controls is a global diversified technology and industrial leader serving customers in more than 150 countries. Our 162,000 employees create quality products, services and solutions to optimize energy and operational efficiencies of buildings; lead-acid automotive batteries and advanced batteries for hybrid and electric vehicles; and interior systems for automobiles. Our commitment to sustainability dates back to our roots in 1885, with the invention of the first electric room thermostat. Through our growth strategies and by increasing market share we are committed to delivering value to shareholders and making our customers successful. In 2012, Corporate Responsibility Magazine recognized Johnson Controls as the #5 company in its annual "100 Best Corporate Citizens" list. For additional information, please visit http://www.johnsoncontrols.com.
About Johnson Controls Power Solutions
Johnson Controls Power Solutions is the global leader in lead-acid automotive batteries and advanced batteries for Start-Stop, hybrid and electric vehicles. Our 50 manufacturing, recycling and distribution centers supply more than one-third of the world's lead-acid batteries to major automakers and aftermarket retailers. Through our innovations we are building the advanced battery industry for hybrid and electric vehicles. We were the first company in the world to produce lithium-ion batteries for mass-production hybrid vehicles. Our commitment to sustainability is evidenced by our world-class technology, manufacturing and recycling capabilities.
SOURCE Johnson Controls, Inc.