The company’s Boonville and Poplar Bluff, Mo., factories will be closed during the next two years as Nordyne starts construction on a $40 million, 550,000-square-foot facility in Saltillo, Mexico. An estimated 700 workers will be affected.
“Moving production was an incredibly difficult decision given the impact on our employees and the Missouri communities,” said Dave LaGrand, president and CEO of Nordyne. ““But the long-term viability and competitiveness of Nordyne will be greatly enhanced by this strategic business move.”
Company officials said they selected Saltillo because of the city’s educated workforce that they believe will quickly adapt to the company’s Demand Flow Technology process.
“Nordyne strongly feels that this manufacturing move will allow us to reduce overhead without sacrificing quality,” LaGrand said. “We wouldn’t be doing it otherwise.”
The company is offering laid-off workers a severance package that includes extended health care insurance and assistance in finding new employment.
“We are committed to minimizing the impact on our employees and helping them through this transition,” LaGrand added.
The Boonville plant opened in 1979. The Poplar Bluff plant began operations in 2001.