The decision will affect approximately 1,200 of the 2,800 jobs on site. The remaining positions in warehouse, office, engineering, and research functions will remain in Syracuse.
According to the company, the move was subject to Carrier's collective bargaining obligations. Carrier said that it is prepared to work in a collaborative effort 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 of operations for the company. "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."
Amyuni also said that 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 system procedures," he 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."
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. Discussions between Carrier and the Empire State Development Corporation have focused on the possibility of concentrating research and development activities in Syracuse.
Publication date: 10/13/2003