A spokesman for the United Steel Workers union at the Whirlpool plant in Fort Smith said Thursday the plant will close in mid-2012 eliminating more than 1,000 jobs.
U.S. Rep. Steve Womack of Rogers also released an email statement Thursday afternoon saying he was disappointed the plant is closing.
The Benton Harbor, Mich.-based company has been studying options for its Fort Smith plant after demand for its products slumped during the recession. The Fort Smith plant employs about 1,100 people — down from a 2005 peak of about 4,500.
Whirlpool's statement
Whirlpool Corporation (NYSE: WHR) today announced changes to its North American manufacturing operations. After a thorough study of its Global Operating Platform announced in August, the company will close its manufacturing facility in Fort Smith, Arkansas by mid-2012. The closure will impact approximately 1000 active employees (90 salaried and 884 hourly). In addition, there are approximately 800 employees on layoff from this facility.
This difficult but necessary announcement is being driven by a decrease in demand for the side-by-side refrigerator platforms that has resulted from the continued weakness in the global economy, and the aggressive pricing actions of global competitors – some of whose trade practices are currently under investigation by the U.S. government.
The decision to close this facility follows a comprehensive review of alternatives for product consolidation within the three product categories currently produced at the plant.
“The employees at our Ft. Smith location are among the best you will find anywhere. While Fort Smith certainly has produced top quality products consistent with our longstanding strategy, we have not been cost competitive due to the extremely low production volumes at the facility,” said Al Holaday, vice president of integrated supply chain and quality.
All Fort Smith production will shift to existing North American sites to leverage the resources and excess capacity at those facilities.
· Production of trash compactors will shift to Ottawa, Ohio
· Production of built-in refrigerators will shift to Amana, Iowa
· Production of the reduced, declining volumes of side-by-side refrigerators will be accommodated within current excess capacity in Ramos Arizpe, Mexico where employment levels will remain flat to negative
Whirlpool is committed to helping the impacted employees and their families with the transition during the next several months. Conversations regarding transition assistance will begin immediately. The company is also working with local and state officials to help ensure that all available training resources are made available to affected employee
The company recently laid off more than 20 Fort Smith employees and earlier this year said it may eliminate as many as 270 jobs. More than 800 hourly positions were cut at the Fort Smith plant in November.
Whirlpool opened the Fort Smith plant in 1966 where it now manufactures side-by-side refrigerators, trash compactors and related parts.
The company announced in 2005 that it would shift some refrigerator production from its Fort Smith plant to Ramos Arizpe, Mexico.
Whirlpool is the world’s largest appliance maker. Its brands include Whirlpool, Maytag, KitchenAid, Jenn-Air, Amana, Roper, Estate, Admiral and Gladiator. The company is expected to release third quarter earnings on Friday.
A news release from the city said retraining opportunities for laid off employees would be a priority.
"During the past several years, approximately 3,500 Whirlpool workers have been laid off, and most have found other employment in the regional economy," the news release stated.
Mayor Sandy Sanders said in the news release that manufacturing has long been an important part of Fort Smith's economy.
"We will continue to do everything we can to retain our diverse manufacturing base, but today’s announcement underscores the importance of developing a broader base of employment opportunities," Sanders said.
In a statement issued just after 2 p.m., Rep. Steve Womack commented on the plant's closure.
“I am disappointed with Whirlpool’s announcement, and my heart goes out to the employees and their families. Despite the news, I consider the Fort Smith region one of America’s most attractive areas for economic development," Womack said in the statement. "It is ideally situated with incredible infrastructure and a quality of life second to none in the country. With a qualified workforce and the supporting institutions, I am confident we’ll find another corporate partner who believes in Fort Smith and the enormous opportunities it offers.”
Sen. John Boozman also issued a statement.
"This announcement is disappointing news for employees, the community and local businesses that have developed a strong working relationship with Whirlpool," the statement said. "The Congressional delegation, the Governor and local officials have been actively working to maintain this Fort Smith facility. We have gone to great lengths to try to meet the requests of the company and identify how we can continue to make this location a good business decision for Whirlpool. I am frustrated by this outcome."
Whirlpool Corp. said earlier today that it would hold a meeting with employees at its factory in Fort Smith.
The company confirmed the meeting was scheduled to be at 2:30 p.m.
A Whirlpool spokesman at its headquarters in Benton Harbor, Mich., said the company will issue a statement after the meeting.
The factory employed 4,600 in 2006 but has about 1,000 workers now. About 800 employees were laid off about a year ago. Part of the plant’s production was moved to a new factory in Mexico.