SHANGHAI – Johnson Controls Inc. (JCI) has announced it will remove lead-processing capabilities from its Kangqiao battery plant in response to an initiative established by the Shanghai Municipal government to remove lead manufacturing from the community. The company says it 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 as well.
 
"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."
 
Molinaroli added that the company is offering severance packages that are "well above" legal requirements, and will provide outplacement and counseling services.
 
The change will not impact customers, JCI says, as lead-processing manufacturing from the Kangqiao plant has already been redirected to other Johnson Controls facilities in China.