By Carol Wersich, Evansville Courier & Press
EVANSVILLE - Whirlpool Corp. estimates it will incur a total of $51 million in costs in connection with the closure of the Evansville facility on U.S. 41 North. The figure was contained in a report Whirlpool filed with the Securities and Exchange Commission.
Inside INdiana Business with Gerry Dick first revealed the report, which estimates Whirlpool will incur approximately:
- $21 million in employee termination costs
- $13 million in equipment relocation costs
- $5 million in asset impairment costs
- $12 million in other associated costs
The company expects to recognize approximately $21 million of the costs in the 2009 fiscal year, $27 million of the costs in the 2010 fiscal year and $3 million of the costs in the 2011 fiscal year, according to the SEC filing.
Whirlpool estimates about $33 million of the estimated $51 million total cost will result in future cash expenditures.
Whirlpool officials announced on Aug. 28 changes to its North American manufacturing operations, which will result in the closure of its Evansville plant in mid-2010.
The company expects about 1,100 full-time positions will be eliminated as a result of the closure.
The company expects to transfer the production of its top-freezer refrigerators to one of its manufacturing facilities in Mexico. It plans to transfer production of its icemakers to a company-owned site yet to be determined.
The company is evaluating alternatives for the Refrigeration Product Development Center, which is located with the Evansville manufacturing facility and has about 300 employees. No decision has been made on whether it will be relocated or remain in Evansville.
Even as the end for the plant nears, Whirlpool is looking to add about 130 temporary full-time workers.
The move is designed to ensure an adequate supply of refrigerators during the period when the Evansville plant is closed and the last of the manufacturing equipment is removed and shipped to Mexico.
Applications are being accepted at WorkOne, the Indiana state employment office, at 700 E. Walnut St. near Downtown Evansville.
Hiring is expected to begin in late September.