(Yicai Global) May 14 -- Battery maker Shenzhen Center Power Tech Co. will close down its factory in its hometown of Shenzhen in China’s southern Guangdong province due to tightening environmental protection requirements.
The firm will ramp up capacity at units in Vietnam and in central Hubei province to make up for the shortfall in production and ensure a continued supply of high-quality products, the lead battery maker said in a statement.
Center Power Tech did not confirm a timetable or the costs associated with the capacity migration plan, but it will maintain existing key production equipment as well as core staff members.
The plan is expected to lead to high redundancy expenses in the short-term, which will be reflected in its financial report for this year, but in the long term, it can help to reduce labor costs and in particular, moving some output to Vietnam can it to avoid a four-percent consumption tax.
Center Power Tech owns three leading lead battery brands: Vision, Senry and Euroba, and it has a combined battery production capacity of 6 million kilovolt-ampere-hours and a combined lithium battery production capacity of 1.1 billion watt-hours.
Editor: William Clegg