In a filing today with the U.S. Securities & Exchange Commission, Whirlpool Corporation has announced plans to restructure its dryer manufacturing operations in the United Kingdom as a result of last summer’s Brexit vote to step away from the European Union.
Today’s Form 8-K filing says that the Benton Harbor-based appliance manufacturer and certain subsidiary companies began consultations with certain works councils and other regulatory agencies in connection with their proposal to restructure Europe, Middle East and Africa (EMEA) dryer manufacturing operations. The plan had been authorized by corporate management at the end of last year regarding operations at the Yate, U.K. facility.
Whirlpool says that the Yate facility will focus on manufacturing dryers there exclusively for consumers in the U.K., thereby ending production in 2018 at Amiens, France, while concentrating the production of dryers for non-U.K. at their facilities in Lodz, Poland. Those moves would impact an anticipated 500 workers, although the “impact” was not identified as eliminated jobs, necessarily, although whatever impact is felt is expected to be complete by the end of 2018.
Whirlpool adds that they estimate incurring up to approximately $65-million in “employee-related costs,” approximately $12-million in “asset impairment costs,” and approximately $11-million in “other associated costs” in connection with their actions.
Corporate officials also estimate that approximately $76-million of the estimated $88-million total cost will result in future cash expenditures. They had previously reported anticipated restructuring charges of up to $200-million for fiscal year 2016. The actions anticipated today have already resulted in a 2016 charge of $20-million which falls within the previously reported anticipated charges for 2016.
In an unrelated matter, Whirlpool Chairman & CEO Jeff Fettig was one of 12 captains of industry invited to the White House by President Donald Trump for a “listening session” Monday morning as he studies manufacturing’s impact on the nation.
The President was quoted after his meeting this morning with the Big 3 automakers, “We had Whirlpool up yesterday, we’re talking about big construction of facilities, and it’s not the construction I want, although that brings jobs. It’s the long term jobs that we’re looking for.”
Company officials have said they will leave all comment regarding the sit-down with the President up to the White House, as had been requested by President Trump, himself.
