Carrier Corp. has reached an agreement with incoming U.S. President Donald Trump to save around 1,000 jobs at an Indianapolis facility scheduled to close by 2019.
The agreement was announced Tuesday night. Details have not been released.
In February, Carrier said it would close the Indianapolis plant over the next three years, a move that would cost approximately 1,400 workers their jobs.
Chris Nelson, president of Carrier’s HVAC systems and services in North America, said at the time that regulations and pricing issues contributed to the company’s decision.
“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 in a Feb. 10 statement. “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.”
While he was campaigning for president, Trump often mentioned Carrier’s decision to move production of the HVAC construction products to Mexico as the kind of activity his administration would try to stop. He blamed trade deals such as the North American Free Trade Agreement for fueling the exodus of high-paying manufacturing jobs from the U.S.
In a Thanksgiving Day tweet, Trump said he was “making progress” on convincing Carrier to keep the Indianapolis factory open.
U.S. Sen. Joe Donnelly (D-Ind.) said in a statement he was happy to learn that the jobs would be saved, but added that many other Indiana workers are expected to lose their jobs as production moves outside the U.S. He asked Trump to help them.
“This is welcome news for the Hoosier workers who will keep their jobs, and I'm eager to learn the specific details of the agreement," he said. "For many months I have been fighting alongside the Carrier workers and pushing to keep these jobs in Indiana. While this is good news, in Indiana alone, there are at least two other companies currently planning to move Hoosier jobs out of the country. We need to change our laws to encourage companies to grow here at home. I hope President-elect Trump will work with me toward this goal, so that companies will invest in the foundation of our economy: our workers and our communities.”