Officials of Daikin Industries, Ltd., (DIL) has announced it will be transferring production from its McQuay International plant in Auburn, New York, to its Goodman plant here in Fayetteville.
The transition will begin in April and continue over an 18-month period, according to a memorandum issued Wednesday by McQuay officials to employees. That memorandum went on to state that Daikin will close the Auburn plant by Dec. 31, 2014.
The decision to transfer production from Auburn to Fayetteville was made for operational reasons, said Mike Schwartz, McQuay’s chief executive officer, in the memorandum, noting that the decision came as a result of there being available production capacity at Goodman’s Fayetteville plant.
According to a report in a Syracuse, New York, newspaper, regional economic development officials there are hoping to engage the company to see if there’s any possibility of reversing the announcement, but according McQuay representatives, the company’s decision is final.
Schwartz stated in the memorandum that McQuay would be negotiating with the United Steelworkers Local 32 there in relation to the impact of the decision on Auburn’s production and maintenance employees. McQuay will also be working with community officials there to minimize the impact on Auburn and surrounding communities.
“McQuay and Goodman will be jointly cooperating for an orderly transition to meet customer requirements during and after the transition,” he stated.
The Auburn factory, which employs approximately 350 people, makes heating, ventilation and air conditioning equipment for commercial buildings. The company was acquired by Daikin Industries in 2006, six years before Daikin purchased Goodman Global Group Inc. last year for $3.7 billion. The acquisition of Goodman made Daikin the world’s largest maker of HVAC systems.
The Goodman plant in Fayetteville, which similarly produces commercial and residential heating and air conditioning equipment, currently employs approximately 1,400 people.
Daikin is a Fortune 1000 company with 2011 revenues in excess of ¥1218 billion and more than 44,000 employees worldwide. Daikin is engaged primarily in the development, manufacture, sales and aftermarket support of heating, ventilation, air conditioning and refrigeration equipment, refrigerants and other chemicals, as well as oil hydraulic products. DIL is headquartered in Osaka, Japan, has manufacturing operations in 18 countries and a sales presence in more than 90 countries.