Whirlpool to close two plants, eliminate 1,250 jobs

Whirlpool Corporation on January 31 announced changes in several of its North American manufacturing facilities. The company says the changes are part of an ongoing, worldwide effort to optimize the company's regional manufacturing facilities, supply base, product platforms and technology resources to better support its leading global brands with innovative products.

Following a comprehensive study aimed at identifying opportunities for increased manufacturing efficiencies in its refrigeration business, the company plans to close its facilities in LaVergne, Tenn., and Reynosa, Mexico. All Whirlpool plants and product platforms worldwide undergo this same analysis on a regular basis.

Production of built-in refrigerators currently manufactured at the LaVergne facility will be moved to the company's Fort Smith, Ark., facility, and production of side-by-side refrigerators made at Reynosa will shift to Whirlpool's Ramos Arizpe, Mexico, site.

The changes will help the company increase efficiencies by leveraging the size and scale of its Fort Smith and Ramos Arizpe facilities, allowing for refreshed product designs that will bring new innovations and features to consumers.

At LaVergne, approximately 500 jobs will be eliminated, while at Reynosa, an estimated 750 jobs will be affected. The Fort Smith plant expects to add approximately 275 jobs by December, and the Ramos Arizpe facility plans to add an estimated 600 employees by mid-year.

"These decisions, while difficult, are an important part of our overall operating plans, and will help ensure that we remain competitive in North America," said Al Holaday, vice president, Whirlpool North America manufacturing. "The changes are in no way a reflection on our employees at either the LaVergne or Reynosa facilities, whose contributions we greatly appreciate."

The company will support employees affected by the changes with a severance package. Whirlpool will work in coordination with labor unions to assist union employees during the transition. The announced restructuring is expected to cost between $15 million and 20 million.

Whirlpool Corporation is the world's leading manufacturer and marketer of major home appliances, with annual sales of more than $18 billion, more than 73,000 employees and more than 70 manufacturing and technology research centers around the world. The company markets Whirlpool, Maytag, KitchenAid, Jenn-Air, Amana, Brastemp, Bauknecht and other major brand names.