St. Louis — NORDYNE announced Thursday it will gradually relocate its split system and furnace manufacturing lines to a new manufacturing campus in Saltillo, Mexico. The move will affect around 700 employees in the Boonville, Mo. and Poplar Bluff, Mo. facilities. NORDYNE will continue to manufacture select heating and cooling systems in the company's Dyersburg, Tenn. plant.
"Moving production was an incredibly difficult decision given the impact to our employees and to the Missouri communities," says Dave LaGrand, president and CEO of NORDYNE. "But the long-term viability and competitiveness of NORDYNE will be greatly enhanced by this strategic business move."
NORDYNE has developed a transition plan for impacted employees, including severance pay, extended health insurance coverage and outplacement services through local resources.
"We are committed to minimizing the impact on our employees and helping them through this transition," adds LaGrand.
The new facility is expected to be at full capacity by the end of 2015, with the transition starting early next year.
"NORDYNE strongly feels that this manufacturing move is necessary to remain competitive," explains LaGrand. "We wouldn't be doing it otherwise."
NORDYNE opened its Boonville, Mo. plant in 1979. Mayor Julie Thacher said since that time the plant has been an integral part in the community.
"It is a sad time for Boonville and for the state," Thacher said.
Thacher said the Boonville plant counts for 200 jobs in the community and within two years those jobs will be gone.
NORDYNE opened its Poplar Bluff, Mo. facility in 2001. The Dyersburg, Tenn. plant, which is remaining open, started operations in 2003.