Heating and cooling company Lennox International has announced it will close its hearth products operations in Lynwood, Calif., and consolidate its U.S. factory-built fireplace manufacturing operations to Union City, Tenn. The fireplaces, stoves and other related products are produced for the residential new construction and remodeling markets.
The consolidation will be finished by 2008 at a projected cost of approximately $5 million. The company expects the consolidation to lead to annual cost reductions of more than $2 million starting in 2008.
Lennox CEO Todd Bluedorn said the move is necessary for the company “to be competitive moving forward.”
"The current downturn in the residential new construction market, combined with increasing competition and the need to control costs, make it imperative for us to increase efficiencies in our operations,” he said.
Lennox International produces products for HVAC and refrigeration markets worldwide.