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Carrier causes outcry in US as two AC and controls plants set to move to Mexico

Announcement of 2100 AC and controls jobs moving from Indiana to Mexico comes as a blow to US state

Carrier Corporation has announced plans to relocate manufacturing from its plant in Indianapolis, Indiana to a plant in Mexico over the next three years. US media reported that the move will result in the loss of about 1,400 jobs, beginning in 2017.

The jobs are expected to move to Carrier operations in Monterrey, Mexico, reported the Indianopolis Business Journal.

At the same time sister company  United Technologies Electronic Controls also announced that it will move its HVACR controls manufacturing operations in Huntington, Indiana to a new plant in Mexico, costing the northeast Indiana city 700 jobs by 2018. 

Chris Jones, president of United Steelworkers Local 1999, which represents 1,300 workers at the Indianapolis plant told the Business Journal. “At no time did we think this was a possibility. The plant had  been there a long time. It was very profitable, and we had not had a lot of issues.”

The average wage for union members there is about $23 an hour, which is almost four times what many manufacturing jobs in Mexico pay, the Business Journal reported

Chris Nelson, Carrier’s president of HVAC systems and services for North America, said the move was  ’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.”

 

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