ROMOSS halts production for six months as the power bank giant confronts an escalating crisis and potential layoffs.
Credit: ROMOSS
The leading Chinese power bank brand ROMOSS has unexpectedly declared a six-month halt in operations starting July 7, ceasing all production and business activities, as reported by Chinese media outlet Jiemian on Monday. According to the announcement, only a limited number of employees involved in product recall services will remain during this time.
Why it matters: This situation traces back to June when ROMOSS, alongside Anker Innovations, recalled over one million power banks. This extensive recall prompted the Civil Aviation Administration of China to prohibit carrying power banks that either lack a 3C (China Compulsory Certification) mark or are part of the recall on flights.
Details: In June, ROMOSS recalled approximately 490,000 power banks. Following this, in July, the State Administration for Market Regulation of China suspended the 3C certification for all ROMOSS power banks. Currently, all ROMOSS products have been removed from major e-commerce platforms in China.
Recent investigations by state-owned media CCTV revealed that the recalled power banks had defective battery cells contaminated by metallic particles during production. This defect created safety hazards, including the risk of overheating and fires after repeated use. The problem has been linked to upstream supplier Amprius (Wuxi) Co., which supplied the faulty battery materials.
According to the company's notice, ROMOSS employees will receive their full salaries during the first month of the suspension. From the second month onwards, they will only receive a living allowance equal to 80% of Shenzhen’s minimum wage (RMB 2,520 or $345 per month). After deductions for social insurance, their take-home pay will decrease to about RMB 1,000 ($140 per month).
Several ROMOSS employees informed The Cover reporters that when they tried to access their personal belongings at the Shenzhen office, they discovered that their access badges had been deactivated. Many employees perceive this as a de facto layoff.
An additional report by The Cover noted that ROMOSS’s internal system lists over 700 active employees. While full-time staff are suspended, the company has hired more than 100 outsourced temporary customer service representatives to manage recall-related responsibilities.
Context: On Tuesday, local media outlet Zhiwei interviewed Anker Innovations, another key player involved in the battery recall. Xiong Kang, vice president of Anker Innovations, mentioned that the total production volume of the potentially defective battery cells is estimated to be between 20 to 30 million units, with a defect rate that may exceed the amount recalled so far.
Jessie Wu is a tech reporter based in Shanghai. She covers consumer electronics, semiconductors, and the gaming industry for TechNode. Connect with her via e-mail: [email protected].
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ROMOSS halts production for six months as the power bank giant confronts an escalating crisis and potential layoffs.
The prominent Chinese power bank company ROMOSS has unexpectedly declared a six-month halt beginning July 7, pausing all production and business activities.