(Yicai) July 7 -- Romoss Technology, a leading Chinese power bank manufacturer recently caught in a recall scandal due to safety issues, has suspended production for six months.

Most of Romoss’ factory workers were given a six-month furlough from today, with a monthly salary equal to only 80 percent of Shenzhen’s CNY2,500 (USD350) minimum wage, Yicai learned from an employee. The company will continue to pay social security and housing funds, but based on the new salary.

Last month, Romoss recalled over 490,000 power banks produced between June 2023 and July 2024 because metal debris in their internal battery cells was found to pose overheating and combustion risks. On July 3, the firm refuted bankruptcy rumors.

“Romoss has about 690 employees, but only a small group involved in the recall incident is expected to continue working to ensure basic operations,” the staffer noted, adding that the shutdown notice was a shock for everyone.

On June 10, Apex Wuxi’s China Compulsory Certification, a mandatory safety and quality certification system for some products sold in the country, was temporarily suspended after the original equipment manufacturer of the Chinese maker of core power bank parts improperly altered separator materials in battery cells.

This prompted Romoss and its rival Anker Innovations, two of Apex’s main clients, to recall over 1.2 million units between June 16 and 20 over combustion risks under extreme conditions. Afterward, the State Administration for Market Regulation suspended their 3C certifications.

Anker attributed the issue to unapproved raw material changes in certain batches of battery cells from a supplier.

On June 26, China’s aviation regulator issued an emergency notice banning passengers from carrying power banks without the 3C certification after a series of in-flight incidents.

Apex was founded in 2014 as a joint venture between US lithium-ion battery maker Amprius Technologies and China’s Wuxi Industry Development Group, but has now completed a spin-off. The company recently halted production and received an investigation for its involvement in the recall scandal.

Editors: Tang Shihua, Futura Costaglione