Energizer says soft demand doomed NW Mo. plant

MARYVILLE, Mo. (AP) — Shrinking demand for disposable batteries is the main reason Energizer decided to shutter its northwest Missouri plant next year, company officials said, leaving about 300 workers out of a job.

The company announced earlier this month it was closing its Maryville plant as part of a restructuring plan made necessary by a global trend toward rechargeable batteries. The St. Joseph News-Press reported (http://bit.ly/UiDd07 ) that the plant makes disposable AA, AAA, C and 9-volt batteries.

“Volumes for primary batteries have been declining for the last few years, and we are estimating that the softness will continue, with battery category unit volumes estimated to decline in the low single digits in 2013,” said Jacqueline Burwitz, Energizer’s vice president for investor relations.

Adam Moore, who organized The Battery Show last week in Detroit, said disposable batteries such as those manufactured by Energizer and other household items are fading in popularity because of the trend toward reusable, cost-effective products.

“Power tools or personal electronics that previously took primary batteries are being replaced by more efficient battery packs, leading to growing companies and job creation for this rapidly expanding market,” Moore said.

He said the Maryville plant could be retooled by a related company to retain its importance in the field. He said the lack of proper recycling facilities for disposable batteries, especially in undeveloped nations, is a detriment compared with environmentally sensitive rechargeable alternatives.

“The battery industry in general is still looking at exceptional growth next year, particularly considering the current economic climate, and the decline in the primary battery market demonstrates just one change in this rapidly evolving industry,” Moore said.

In the meantime, a resource team consisting of the Missouri Career Center, Maryville’s chamber of commerce and Northwest Missouri State University, is working on plans to assist laid-off Energizer employees.

Kim Mildward, director for the Workforce Investment Act Adult and Dislocated Work Program at the career center, said plant employees can come to the center to start determining their skills for the marketplace.

Those workers can pursue a National Career Readiness Certificate to establish their competence in math, reading and other skills in their fields.

She said the certification can be a key in retraining displaced employees.

“That is something we highly recommend,” she said.

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Information from: St. Joseph (Mo.) News-Press, http://www.stjoenews-press.com

Comments

JCLifer 5 months, 3 weeks ago

Hope and change. 4 more years..

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PatsyDecline 5 months, 3 weeks ago

Actually it's more supply and demand.

But feel free to politicize as your ideology guides.

Happy Holidays.

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jcguy25 5 months, 3 weeks ago

I agree Patsy.. the article clearly states due to the global trend of rechargeable batteries.. some people need to get a clue and move on.

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him 5 months, 3 weeks ago

Personally I don't see how there can be a shortage of batteries. There are so many things that use these smaller batteries. From my experience the rechargable batteries don't last near as long on a charge than just replacing it with a new one. How many of you recharge a AA battery for your clock or flashlight? I am always buying these AA, AAA and C batteries. They are saying supply and demand but I think its something else like cost of insurance and taxes. You will be seeing alot more of these companies closing the doors.

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connor 5 months, 3 weeks ago

You are correct. Some posters on here cannot pass up the chance to throw out an insult. They are like RINO's they cause more trouble than they are worth.

The rechargeable batteries do not hold near the charge of the old single charge ones. Also the lack of rare earth speculation in the Western states means China and South Africa are about the only places to purchase the metals needed to make the rechargeable ones.

I am sure you are right there is much more to this story than the press release says.

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kentheco 5 months, 3 weeks ago

Rumor has it Wal-Mart dropped them as a vendor. Do not know if true, will check for Energizer batteries next time I go to Wal-Mart (after the crazy shopping rush).

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BubbaD 5 months, 3 weeks ago

I suspect the drop in battery demand is driven by the fact that the world is using different devices configured with different batteries. LED devices, digital devices, cell phones, digital cameras, etc. use rechargable batteries in forms other than the familiar energizer batteries. These can be special battery packs or button batteries.

I have had good luck, btw, with rechargeable AA and AAA batteries. I have one simple charger that does both/either and won't overcharge them. The NiMH rechargeable batteries come in different qualities with some holding more charge and surviving more charge/discharge cycles.

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bluesfan13 5 months, 3 weeks ago

So are you praising Energizer for closing the plant, or damning them? First you say "thank Obamanomics" for Energizer's situation, then you claim (decrease in battery demand) was only a pretext to close the plant, and then you reference Energizer's increasing profits (which are coming from other markets). So, is Energizer more profitable because of Obama, or are they cutting jobs because of Obama, or, is every single action in today's economy somehow directly Obama's fault?

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bluesfan13 5 months, 3 weeks ago

In other words, you know nothing about this, but wanted to throw out the obligatory "blame Obama". For all you know, Energizer's profits are rising because they are ADDING production facilities for rechargeable batteries and battery packs. They could be (and in fact ARE) thriving in this economy.

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JCLifer 5 months, 3 weeks ago

Energizer didn't build that!

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