March 7 (SeeNews) - US-based electric battery manufacturer EnerSys said that its board of directors has approved a plan to shut down its facility in the Bulgarian city of Targovishte, which produces batteries for diesel-electric submarines.
"Management determined that future demand for batteries of diesel-electric submarines was not sufficient given the existing number of competitors in the market," EnerSys said in a statement on Wednesday.
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"EnerSys plans to sell or transfer the plant and possibly the equipment to other parties if possible," it added
The company expects to incur a pre-tax charge of approximately $32 million (28.3 million euro), of which $22 million in asset write-offs and $10 million for severance, clean up and remediation related to the facility and contractual releases.
EnerSys' Bulgarian unit turned to a net profit of 2.35 million levs in 2017, from a net loss of 1.13 million levs in 2016, according to the latest available data from the commercial register. The company booked sales revenue of just over 21 million levs in both 2017 and 2016.
($ = 0.8836 euro)