Whirlpool to Close Shanghai Plant and Move to Zhejiang
SHANGHAI, Apr. 10 – U.S. appliance maker, Whirlpool, is closing its washing machine plant in Shanghai and transferring to the Hisense-Whirlpool Facility in Changxing Economic Development Zone in Zhejiang Province.
The move will cut 600 jobs in Shanghai but will create 900 jobs in the Zhejiang production base by the end of the year. Whirlpool decided to close the plant as part of its consolidation efforts in the market.
In a press release, the company said the closure was due to market changes: “The consolidation of washing machine production will help optimize the use of existing resources and generate a higher cost efficiency.”
Whirlpool’s regional headquarters and commercial and administrative operations will remain in Shanghai. The company assured that it would comply with the Chinese Labor Law and support the laid off workers by informing them of related job opportunities and providing them with advice on social welfare, medical insurance and occupational training to name a few.
The president of Whirlpool International, Paulo Periquito, said: “This consolidation, like other changes we’ve made as part of our global operating strategy, is difficult but necessary, to ensure that Whirlpool Corporation maintains its leadership position in today’s changing global marketplace.”
For the past two years, Whirlpool’s share in the Chinese market has consistently been increasing. China Market Monitor research shows that Whirlpool was one of the only two washing machine producers that had a significant increase in market share over the past quarter, reports China Daily.