Battery plant to shut down

Published by rudy Date posted on April 26, 2011

CEBU, Philippines – After 40 years of operations, Energizer Philippines Inc. will shut down its manufacturing plant in barangay Jagobiao, Mandaue City effective May 7.

EPI, one of the country’s longest-running battery plants in the country, cited high cost of operation, particularly power and transportation, and other costs of doing business as the reason for the closure.

The Mandaue, Cebu plant manufactures carbon zinc batteries, of sizes D and AA, under the brand Eveready.

Department of Labor and Employment regional director Exequiel Sarcauga said that EPI has already sent them a notice of closure last March 10.

A total of 91 employees will lose their jobs, but they will be receiving benefits more than what is provided for under the Labor Code.

Aris Gliocam, president of the Mandaue Eveready Battery Labor Union however said that 100 employees will lose their jobs, wherein 70 are rank and file while the rest hold supervisory and managerial positions.

Gliocam, who has been working for 12 years at the plant’s operation division, pointed out that there is no labor dispute going on.

He added that the company is opening 25 slots for rank and file employees to work in Singapore’s plant.

In a previous press statement, the company said Eveready carbon zinc batteries that have been produced in their Jabogiao plant will be sourced from Indonesia.

The statement added that the closure of the Cebu plant is part of the global review of manufacturing capacities by US-based Energizer Holdings, Inc. to optimize growth in the face of a rapidly changing economic environment.

Changes in consumers, customers, competitors, and category necessitated a review of business strategies, plans and processes.

The Cebu plant was established by Union Carbide Philippines, Inc. on May 15, 1971.

It initially served the areas in the Visayas and Mindanao markets and eventually the entire country after the closure of its Mandaluyong plant in 1999.

The statement further said that EPI will continue to distribute its other brands nationwide through its commercial head office in Metro Manila.

Aside from batteries, Energizer also produces consumer goods such as household and personal care products with the following brands — Schick (razors and blades), Playtex (nursery care and tampons), Wet Ones (wipes), Hawaiian Tropics (sun care), Energizer (alkaline and lithium batteries and flashlights) and Eveready (carbon zinc batteries and flashlights). —/NLQ (FREEMAN)

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