Sept 24 Johnson Controls Inc, which
makes batteries and interiors for automobiles, said it would
stop manufacturing lead-acid batteries at its Kangqiao plant in
China, eight months after the Shanghai municipal government
ordered it to suspend production at the unit on alleged
The government had ordered the unit in February to halt the
production of lead-acid batteries after the plant was linked to
incidents of contamination in Shanghai that sickened some
The company said in a statement that it will shift lead-acid
battery manufacturing to other Johnson Controls facilities in
China, and that customers would not be impacted.
Storage, labeling, prepping, and shipping of batteries
manufactured in other facilities will continue, it said.
Johnson Controls also said the operational change would
require it to cut jobs.
The company said it is working with interested employees to
explore the possibility of transferring them to other
facilities, and offering severance packages "that are well above
Shares of Johnson Controls were down about 1 percent at
$28.25 on Monday morning on the New York Stock Exchange.