Battery maker lays off workers, announces new royalty deals

Monday, April 30, 2001 | 11:21 a.m.

Valence Technology, a Henderson-based battery maker, said it laid off 181 workers at its manufacturing plant in Mallusk, Northern Ireland.

The company said the layoffs at its European subsidiary -- Valence Technology V.B. -- were the result of a new automated packaging and production system that requires less staff for the same amount of production. Valence plans to start operating the new system in May.

The company said the economic downturn was also partly responsible for the layoffs.

The company said in March it received a $6 million grant from the Industrial Development Board of Northern Ireland to establish and expand the Mallusk plant.

The 181 layoffs reduced the Northern Ireland staff to about 220. None of the layoffs affected the Henderson operation, said company spokesman James McDougall.

He said the company employs about 70 people in Henderson. Its headquarters is in a 115,000 square-foot building located at 301 Conestoga Way.

Valence manufactures lithium-ion polymer rechargeable batteries for mobile devices like cell phones and other gadgets.

McDougall said the company does not sell its batteries to the consumer market, but rather to manufacturers of mobile devices.

The company reported a loss of $10.6 million, or 28 cents a share, in the third quarter ended Dec. 31. That compares to a loss of $10.1 million or 32 cents for the comparable quarter in the previous year.

Separately, Valence said it:

--Licensed its technology to manufacture lithium-ion polymer batteries to the China-based Shanghai Optical Communications Corp., a company owned by the Shanghai Municipal People's Government. Terms were not disclosed.

--Signed a technology transfer agreement with Elite Ionergy Co. Ltd., a privately held Taiwanese manufacturer and marketer of lithium-ion polymer batteries. Valence is to receive an initial $500,000 licensing fee and quarterly royalty payments of 2 percent to 6 percent based on revenues from EIC sales of lithium-ion polymer batteries using Valence's technology.

--Received orders from two new customers it declined to identify for its recently launched Model C59 batteries. Valence said the batteries are ideal for use in low profile, high-energy, wireless devices and will be used to power personal digital assistants (PDAs) and wireless modems.