ST. LOUIS — Nordyne announced today that it will be gradually relocating its split system and furnace manufacturing lines to a new manufacturing facility in Saltillo, Mexico. Packaged systems and select high-efficiency split systems will continue to be manufactured in the company’s Dyersburg, Tenn., plant.

The new 550,000-square-foot facility in Mexico is expected to be at full capacity by the end of 2015, with the transition starting early next year. Nordyne said lines will be moved one at a time to create as seamless a transition as possible. The company will carry extra inventory during the transition in order to ensure product availability.

“Moving production was an incredibly difficult decision given the impact to our employees and to the Missouri communities,” said 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 said it selected the Saltillo location, in part, because of an abundant, well-educated workforce that can be quickly certified in the company’s current Demand Flow Technology manufacturing process.

“Demand Flow Technology is all about process,” said LaGrand, “a repeatable, reliable, transferable process. We will take this process with us to maintain the same quality control, same build-to-demand flexibility and same — or even improved — lead times.”

Nordyne will also have a centrally located mixing warehouse in the United States to continue to service customers with the company’s competitive lead times.

“Nordyne strongly feels that this manufacturing move will allow us to reduce overhead without sacrificing quality. We wouldn’t be doing it otherwise,” noted LaGrand.

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Publication date: 3/11/2013