Leading US industrial battery maker EnerSys is restructuring some of its European production and commercial operations after acquiring Bulgaria-based Energia AD.

EnerSys says in a statement the restructuring will help ease the integration of Energia into EnerSys' operations.

The acquisition provides EnerSys with greater access to the rapidly growing Eastern European and Russian markets and an additional low-cost manufacturing platform, the statement says.

The company expects to incur USD12 million of expenses, mainly for employee severance payments and USD5 million in fixed asset write-offs. However, the company should realise cost savings of about USD5 million in fiscal 2008 and more than USD10 million in fiscal 2009 from the restructure.

The restructure is subject to consultation with labour representatives and is expected to be completed by the end of EnerSys's current fiscal year, ending March 31, 2008.

EnerSys announced May 18 it had completed the acquisition of Energia AD, an industrial battery producer in Targovishte, Bulgaria. EnerSys paid about EUR13 million (USD17.5 million) for the company.