Citing Industry Dynamics, Carrier to Gradually Move Indianapolis Plant to Mexico

Carrier announced on Feb. 10 that it would begin a gradual move of its Indianapolis manufacturing facility to Monterrey, Mexico.

The relocation to a site near existing Carrier manufacturing facilities in Monterrey, Mexico, would begin in 2017 and be completed in 2019. The impact on jobs is not immediate.

The proposal is subject to discussions with local union representatives.

The Indianapolis manufacturing facility will continue to meet customers’ needs without disruption throughout the transition. Carrier’s residential HVAC headquarters and engineering organization will remain in Indianapolis.

Chris Nelson, President, HVAC Systems and Services North America, said, “This move is intended to address the challenges we continue to face in a rapidly changing HVAC industry, with the continued migration of the HVAC industry to Mexico, including our suppliers and competitors, and ongoing cost and pricing pressures driven, in part, by new regulatory requirements. Relocating our operations to a region where we have existing infrastructure and a strong supplier base will allow us to operate more cost effectively so that we can continue to produce high-quality HVAC products that are competitively positioned while continuing to meet customer needs.

“This decision is difficult and we recognize the impact on employees, their families and the community. We are committed to ensuring that our employees are treated respectfully and to working closely with their representatives throughout this transition,” Nelson added.

Certain separation benefits, including continued access to the company’s Employee Scholar Program for a period of time, will be available to eligible employees. Under that program, employees may receive tuition, books and fees at accredited institutions of higher education for up to four years.

CARRIER HAS ISSUED THE FOLLOWING STATEMENT:

Carrier today announced plans to relocate its Indianapolis, Ind. manufacturing operations to a location near existing Carrier manufacturing facilities in Monterrey, Mexico, over the course of an estimated three-year period.
The plan anticipates no immediate impact on jobs as the relocation would occur in phases, with work movement expected to begin in 2017 and estimated project completion in 2019. The proposal is subject to discussions with local union representatives.

The Indianapolis manufacturing facility will continue to meet customers’ needs without disruption throughout the transition. Carrier’s residential HVAC headquarters and engineering organization will remain in Indianapolis.
Chris Nelson, President, HVAC Systems and Services North America, said, “This move is intended to address the challenges we continue to face in a rapidly changing HVAC industry, with the continued migration of the HVAC industry to Mexico, including our suppliers and competitors, and ongoing cost and pricing pressures driven, in part, by new regulatory requirements. Relocating our operations to a region where we have existing infrastructure and a strong supplier base will allow us to operate more cost effectively so that we can continue to produce high-quality HVAC products that are competitively positioned while continuing to meet customer needs.

“This decision is difficult and we recognize the impact on employees, their families and the community. We are committed to ensuring that our employees are treated respectfully and to working closely with their representatives throughout this transition,” Nelson added. Certain separation benefits, including continued access to the company’s Employee Scholar Program for a period of time, will be available to eligible employees. Under that program, employees may receive tuition, books and fees at accredited institutions of higher education for up to four years.