DALLAS - Lennox International Inc. (LII) announced that its Allied Air Enterprises subsidiary plans to consolidate operations from Blackville, S.C., into its current operations in Orangeburg, S.C., and its LII United Products facility in Saltillo, Mexico. Lennox International expects to incur restructuring charges related to these activities of approximately $12 million, primarily in the first quarter of 2009, and expects annual savings of $5 million beginning in 2011. The transition of production from Blackville to the other facilities will take place in phases starting in 2009 and is expected to be completed within two years.

“In this challenging market environment, consolidating our Blackville factory operations into Orangeburg and Saltillo is necessary to further improve our operating efficiency, eliminate redundant fixed costs, and provide our customers with improved service,” said Doug Young, president and COO, LII Residential.

“This decision is not based on the performance of our Blackville workforce, but on the challenging market conditions,” said Dan Seaman, vice president and general manager, Allied Air Enterprises. “We are committed to treating our employees fairly and equitably throughout this process, and we will work with them to help ease the transition.”

Allied Air Enterprises manufactures and markets the Armstrong Air, Ducane, AirEase, Magic-Pak®, and Concord brands of air conditioning and heating equipment.

For more information, visit www.lennoxinternational.com.

Publication date: 02/09/2009