Oct. 10, 2003: Carrier To Close Syracuse Manufacturing Operations
The company intends to close its Syracuse-based container refrigeration and compressor manufacturing operations. Approximately 1,200 of the 2,800 jobs on-site will be affected, while the 1,600 positions in warehouse, office, engineering, and research functions will remain in Syracuse. These decisions are subject to Carrier’s collective bargaining obligations. In response to overtures from elected officials, Carrier also announced it is prepared to work collaboratively with local, state, and federal representatives on the future of the campus.
“Manufacturing moves are exceptionally difficult, but this move is essential to Carrier’s competitiveness and growth,” said Ted Amyuni, senior vice president, operations. “These decisions reflect in part market requirements. The global container market has become Asian-focused, with more than 80 percent of our container refrigeration products currently being shipped to Asia. We must be located nearer to our markets.”
“Semi-hermetic reciprocating compression is converting to rotating compression and to specialist manufacturers serving the industry. These vendors serve the HVAC markets and achieve manufacturing scale and costs not available to individual systems producers,” Amyuni said. “Carrier’s demand for semi-hermetic reciprocating compressors has consequently declined by 50 percent over the last three years, and further reductions are anticipated.”
Discussions have begun between Carrier and the Empire State Development Corporation. These include the possibility of concentrating into Syracuse research and development activities presently conducted elsewhere and consequently increasing Syracuse-based technical employment. New research and development activities in Syracuse would be focusing on environmental systems and indoor air quality technologies, in addition to existing concentrations in HVAC and refrigeration engineering.
Carrier’s container refrigeration needs will be served by its existing manufacturing facility in Singapore. The company’s remaining compressor needs will be served from its existing manufacturing facilities in Georgia and China.
Publication date: 10/06/2003
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