ST. LOUIS — Nordyne announced it will gradually relocate its split system and furnace manufacturing lines to a new manufacturing campus in Saltillo, Mexico.

Packaged systems and select high-efficiency split systems will continue to be manufactured at Nordyne’s plant in Dyersburg, Tenn.

The 550,000-square-foot Saltillo plant is expected to be at full capacity by the end of 2015 with the transition starting early next year. Lines will be moved one at a time in an attempt to create a seamless transition. The company will carry extra inventory during the moves to mitigate availability risk.

Following this transition, Nordyne will close its facilities in Boonville, Mo., and Poplar Bluff, Mo. This will affect about 200 employees in Boonville and about 500 in Poplar Bluff.

“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 one of the reasons they selected the Saltillo location was 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,” LaGrand said. “It’s a repeatable, reliable, and 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 U.S. to continue to service customers.

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

Publication date: 3/25/2013