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02 June 2010

Whirlpool announces another factory closure

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US appliance giant Whirlpool is to close another manufacturing facility as part of its global cost cutting and efficiency programme.


The company's new laundry products will be manufactured at the Clyde factory in Ohio, causing the closure of the Benton Harbor facility in Michigan and the loss of 216 jobs.


"Whirlpool Corporation's newest laundry platforms are the most energy and water efficient we've ever produced and these products utilize new and fewer parts," said Al Holaday, vice president, manufacturing operations, North America region. 


"New innovations have eliminated many of the traditional components produced at the Benton Harbor facility. The new streamlined internal components will be machined at the Clyde Division."


The announcement comes after first quarter results released in April showed that the companies cost cutting measures were combining with returning sales to increase turnover for the period by 11% and operating profit by 45%. The number of units sold in the first three months of the year also went up by 18%.


In August 2009, the company announced the closure of its plant in Evansville, Indiana with the loss of 1,100 jobs, and in July 2008 its factories in Oxford, Mississippi and Puebla in Mexcio were closed.


Since 2008, the number of manufacturing and technology research centres Whirlpool operates around the globe has dropped from 72 to 67. The number of employees has fallen from 73,000 to 67,000 and annual sales from $19 billion to $17bn.