The American company NEC Energy Solutions, specializing in the development and manufacture of energy storage systems, announced plans to cease operating activities. This decision not only due to the fierce competition in the industry, but also the fact that the pandemic coronavirus failed attempts of the company to profitably sell your business.
The Massachusetts company has long tried to begin to make a profit, but now customers it was announced about the beginning of the “orderly wind-down” operations. While NEC intends to complete the development projects initiated but to take on the creation of something new is. Japanese conglomerate NEC Corp., is the parent company NEC Energy Solutions, tried to sell the business, but followed the pandemic coronavirus economic turmoil had hampered the search for a buyer.
NEC was one of the relatively small companies in the battery industry, which, however, had global reach. The representative of NEC Corp. said that units engaged in development and manufacturing of energy storage systems, has been unprofitable since its founding in 2014. He also noted that the battery market in recent years shows steady growth, but inside of him there is tough price competition, and that was one of the reasons that influenced the decision of the NEC to withdraw from the market.
Currently, NEC Energy Solutions has contracts to service batteries that will be in force until 2030. The source also notes that many employees can continue to work long enough, as the company intends to complete all ongoing projects.