Carrier Corp. will close two Indiana plants, moving production to Mexico.
The HVAC construction equipment manufacturer announced Wednesday that its facility in Indianapolis and parent company United Technologies Corp’s Huntington, Indiana, plant will close by 2020. The moves will cost 2,100 workers their jobs.
Chris Nelson, Carrier’s North American president of HVAC systems and services, said the current HVAC market made the relocation necessary.
“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,” Nelson said. “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.”
Laid-off workers will be offered a severance package, including tuition assistance for up to four years, officials said.
“This decision is difficult and we recognize the impact on employees, their families and the community,” Nelson added. “We are committed to ensuring that our employees are treated respectfully and to working closely with their representatives throughout this transition.”
The shuttering of the plants is expected to start in 2017, Carrier said. The company’s residential HVAC sales headquarters and engineering offices will remain in Indianapolis.