Whirlpool Corp. plans to close its manufacturing facilities in LaVergne, TN, U.S. and Reynosa, Mexico. Production of built-in refrigerators currently manufactured at the LaVergne facility will be moved to the company's Fort Smith, AR facility, and production of side-by-side refrigerators made at Reynosa will shift to Whirlpool's Ramos Arizpe, Mexico site.
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 US$15-$20 million.