Leading Chinese power bank brand ROMOSS unexpectedly announced a six-month shutdown starting July 7, suspending all production and business operations, Chinese media outlet Jiemian reported on Monday. Only a small number of employees involved in product recall services will be retained during this period, the announcement said.
Why it matters: The incident dates back to June, when ROMOSS and Anker Innovations jointly recalled over one million power banks, a large-scale action that prompted the Civil Aviation Administration of China to ban power banks without a 3C (China Compulsory Certification) mark or those included in the recall from being carried on flights.
Details: In June, ROMOSS recalled around 490,000 power banks in total. In July, China’s State Administration for Market Regulation suspended the 3C certification for all ROMOSS power banks. Currently, all products from ROMOSS have been taken down from all major e-commerce platforms in China.
- Latest investigations from state-owned media CCTV found that the recalled power banks contained defective battery cells due to contamination by metallic particles during production. After repeated use, the defect posed safety risks such as overheating and even fire. The issue was traced to upstream supplier Amprius (Wuxi) Co., which was responsible for the faulty battery materials.
- According to the company’s notice, ROMOSS employees were to receive their full salaries during the first month of the suspension. From the second month onward, they would be paid only a living allowance equivalent to 80% of Shenzhen’s minimum wage (RMB 2,520 or $345 per month). After social insurance deductions, take-home pay would drop to just around RMB 1,000 ($140 per month).
- Several ROMOSS employees told The Cover reporters that when they attempted to retrieve personal belongings from the Shenzhen office, they found their access badges had been deactivated. Many employees see this as a de facto layoff.
- Romoss’s internal system lists over 700 active employees, the same report from The Cover mentioned. While full-time staff were suspended, the company brought in more than 100 outsourced temporary customer service agents to handle recall-related tasks, the report claimed.
Context: On Tuesday, local media outlet Zhiwei spoke with Anker Innovations, another major brand involved in the battery recall. Xiong Kang, vice president of Anker Innovations, said the total production volume of the potentially defective battery cells was estimated at 20 to 30 million units, and the defect rate could be higher than the number recalled to date.
Related
