INDIANAPOLIS, Ind. (Feb. 10, 2016) – Carrier plans to relocate its Indianapolis operations to Mexico over the next three years, a move that will affect about 1,400 jobs.
Jobs will begin transitioning to Monterrey, Mexico, in 2017, with completion estimated in 2019. The company manufactures heating, ventilating, air conditioning and refrigeration systems at its plant located on West Morris Street.
Carrier said the move is subject to discussions with local union representatives. Eligible employees will be entitled to severance benefits, including access to the company’s Employee Scholar Program, which pays for tuition, books and fees at accredited higher education institutions.
Chris Nelson, president of HVAC Systems and Services North American, issued the following statement:
“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.”
The company said its HVAC residential headquarters and engineering positions will remain in Indianapolis.
Mayor Joe Hogsett releases this statement on Carrier’s announcement:
“Today’s surprise announcement was without warning and incredibly disappointing. While I am obviously concerned about the economic impact, my top priority is the well-being of the hardworking families affected by this decision.
A job lost in any part of our community affects us all, and I believe these are the times we must come together as one city to lift up our neighbors. That is why this afternoon I will issue an Executive Order to create a task force that will convene local, state, and federal resources and direct every tool at our disposal toward supporting these workers in the days ahead.”