As a result of increasing environmental, health and safety standards and the investments required to support them, Johnson Controls, Inc., (NYSE: JCI) will implement an 8 percent price increase on lead-acid batteries sold in the United States and Canada for orders starting May 1, 2012.
"Johnson Controls supports the rational tightening of standards such as the National Ambient Air Quality Standard and the National Emission Standards for Hazardous Air Pollutants," said Alex Molinaroli, president, Johnson Controls Power Solutions. "It's the right thing to do to keep up with the latest advancements in environmental, health and safety controls. While we believe our facilities are already best-in-class, the standards have tightened ten-fold, so that will require significant investment."
More stringent national air standards for lead emissions were issued by the United States Environmental Protection Agency in 2008 and again as recently as January 2012. Johnson Controls also anticipates increased standards related to employee safety and employee blood lead levels. According to Molinaroli, the company is investing $162 million on its North American recycling centers to be sure they meet the latest environmental standards, as well as an additional $50 million to further improve the company's already industry-leading employee blood lead levels at its battery manufacturing facilities.
"The investments we're making will be seen throughout the supply chain, ultimately making their way to the consumer," Molinaroli said. "That said, even with these rising costs, the lead acid battery will remain incredibly efficient and the best dollar-for-dollar value for the vital functions it supports."