Changes made to Whirlpool China operations
Whirlpool has announced various manufacturing production changes to its China operations, including the closure of its washing machine manufacturing facility in Shanghai, which will result in the elimination of about 600 jobs.
The company's China regional headquarters, a research and development center, and its commercial and administrative operations are unaffected and will remain in Shanghai. These operations employ about 480 people.
Production of washing machines will be consolidated into the company's Hisense-Whirlpool joint venture facility, located in the ChangXing Economic Development Zone, in the ZheJiang Province. This facility will create 900 new jobs by the end of 2009.
The consolidation of washers at the ZheJiang factory will benefit from the greater scale of the facility, optimize the use of existing resources and provide cost savings, according to a company press release.
"This consolidation, like other changes we've made as part of our global operating strategy, are difficult but necessary, to ensure that Whirlpool Corp. maintains its leadership position in today's changing global marketplace," said Paulo F.M.O. Periquito, president of Whirlpool International. "Whirlpool sees great potential in the Chinese market and in its consumers, and we believe these moves will enable us to speed up innovation and continue to build the best quality and best cost products for our customers in China."
In April 2008, Whirlpool formed a 50/50 joint venture with Hisense Kelon to develop and produce washing machines and refrigerators.