York International Corp. said it plans to move production of three chiller product lines to Durango, Mexico, and San Antonio from York, PA, U.S. A company spokeswoman said the move will result in 250 job cuts.
The heating and cooling systems maker said the moves are part of a larger cost-reduction plan that will reduce manufacturing capacity and eliminate product lines and noncore businesses.
When reporting its 2002 results Feb. 18, York said the entire plan could result in about U.S. $110 million in charges, with an about $35 million net cash outlay.
In January, York told the UAW it planned to move the lines but encouraged the union to suggest an alternate savings plan that would keep the production in York, PA.
In a press release, the company said it presented an alternate cost savings plan to the UAW, which the union voted down March 16.
A York spokeswoman said the company will meet with UAW representatives over the next few days and enter into impact bargaining to determine what will happen to the 250 workers who will lose their positions as a result of the move, which she expects to happen sometime in the coming year.
A UAW representative was unavailable for immediate comment. (Reuters)
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