State tax incentives and promises of an improved U.S. business climate from the incoming Trump administration were among the factors that convinced Carrier to keep its Indianapolis factory open, the company said.
In a statement Wednesday, officials with Carrier Corp. said the facility, which had been scheduled to close by 2019, will see upgrades.
“We have negotiated an agreement with the incoming administration that we believe benefits our workers, the state of Indiana and our company,” Carrier said. “Carrier will continue to manufacture gas furnaces in Indianapolis, in addition to retaining engineering and headquarters staff, preserving more than 1,000 jobs. Carrier will also designate its Indianapolis manufacturing facility as a center of excellence for gas furnace production, with a commitment to making significant investments to continue to maintain a world-class furnace factory.”
In February, Carrier said it would close the Indianapolis plant over the next three years, shifting production to Mexico -- a move that would have cost approximately 1,400 workers their jobs. The agreement negotiated with President-elect Donald Trump and Carrier calls for saving approximately 1,000 of those positions.
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 its press release, Carrier said that while these jobs will stay in the U.S., the company still operates in a world economy that continues to pose challenges for manufacturers.
“This agreement in no way diminishes our belief in the benefits of free trade and that the forces of globalization will continue to require solutions for the long-term competitiveness of the U.S. and of American workers moving forward,” Carrier said.