Lead-acid batteries lead to lead pollution Johnson Controls shuts down to end of year

After a week's investigation, Shanghai Johnson Controls International Battery Co., Ltd. (hereinafter referred to as "Jensen Automation") is still unable to clear the relationship with lead pollution incidents. On the 27th, Ms. Chen of Johnson Controls Public Relations Department told the China Economic Times (microblogging) reporter: “Jensen Self-Control is actively cooperating with relevant government agencies to investigate the actual situation. However, there is no clear official notification that our company has caused Blood lead pollution. We will wait for further notice from the government department. If there is a place where we need to cooperate, we will fully cooperate."

The Johnson Controls pollution-related lead contamination has been identified on the 21st, and Johnson Controls replied to the China Economic Times reporter's e-mail. According to previous media reports, the plant's production suspension period has been extended to October 5, and is likely to be relocated to Changxing, Zhejiang in the future. Internal layoffs have also been put on the agenda, and there may be 'sedimentary pollution' at the Kangqiao plant.

Johnson Controls stated that on September 13, it received notification from the Shanghai Pudong New Area Environmental Protection and City Health Administrative Bureau that since Shanghai Kangqiao’s current production lead amount has reached the limit of the amount of lead used by the environmental protection department for approval, it is effective immediately. Johnson Controls Kangqiao Plant will suspend production of lead. According to this requirement, the Cambridge plant will not resume production until the end of 2011.

It is understood that in 2005, Johnson Controls acquired Delphi's factory in Kangqiao through global mergers and acquisitions. In an interview with the China Economic Times, Johnson Controls internal sources said: “We installed world-class and advanced pollution control in our factories in China. The system is operated and maintained in accordance with the highest standards. The investment in the environmental protection system also ensures that our environmental performance is in line with China's national and world highest standards. There are no double standards for external challenges."

On the 23rd, the Information Office of the Propaganda Department of the Shanghai Pudong New Area Committee accepted an interview with a reporter from the China Economic Times. The person in charge of the Information Office stated that Johnson Controls’ lead pollution control has been identified. “Most children with excessive blood lead concentration are concentrated in Huaqiang Village and Kanghua New Village. After comprehensive inspections and calculations by government departments and environmental protection experts, the accreditation of Johnson Controls is the largest amount of lead discharged from this area, the most important unit. Blood lead levels exceeded Johnson Controls's control."

Lead-related Incidents or Accelerated Reshuffle of the Lead-Acid Batteries In addition to the suspension of production at the Cambridge plant until the end of the year, there was no major action on Johnson Controls' self-control. In addition, Johnson Controls said in an email replying to the reporter: “At present, we are maintaining close communication with customers, suppliers and related employees to jointly formulate response plans in order to reduce the impact on them. lowest."

The reporter observed that from the recent trend of US stocks controlled by Johnson Controls, it has gradually declined. Cui Yu, an analyst of IPO Consulting Department of China Investment Advisors, believes that the overall performance of Johnson Controls is in a declining trend, causing the market to bearish on its long-term operating results.

Cui Yu also said that the performance of Johnson Controls has a certain correlation with the performance of the entire market. From the current market, the recovery of the industry in the short term is less likely. The real economy determines the trend of the capital market. This also indicates that the sector of the industry in the capital market will face a longer period of adjustment.

Lin Boqiang, director of the China Energy Economic Research Center at Xiamen University, said in an interview with a reporter from the China Economic Times: “The incident involving lead contamination will definitely affect Johnson Controls. In the short term, Johnson Controls’ product sales are positive. It will be affected. In the long run, increasing investment in environmental protection will prompt Johnson Controls to increase production costs and accelerate the elimination of small and medium lead-acid battery manufacturers."

Lin Boqiang said, "At present, China's lead batteries are mainly exported to foreign countries, and there is a vicious circle of "enjoy others and pollute themselves." We hope that China will use Johnson Controls' lead-control pollution incident as an opportunity to adjust the industrial structure and promote sustainable development."

“The end result of the industry consolidation is to shut down 90% of lead-acid battery manufacturers, leaving only 200-300 companies that meet the requirements of 'health protection distances' with relatively large capacity and scale of production.” said Li Shengmao, senior research fellow at CIC Advisors. In an interview with the China Economic Times, the reporter said, “Many lead-acid battery manufacturing companies are small and medium-sized enterprises, distributed in small towns, suburbs, or rural and rural areas, which provide employment opportunities and bring tax revenues, due to local protectionism. Existence, all closure of these SMEs is not easy to achieve."

Johnson Controls stated that it has received notification from the Shanghai Pudong New Area Environmental Protection and City Health Administrative Bureau that Johnson Controls Kangqiao Plant will suspend production of lead, and the Cambridge plant will not resume production until the end of 2011.

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