Whirlpool discloses Indiana plant-closing costs

How much does it cost to close a large manufacturing plant that employs about 1,100?

For Whirlpool Corp., the answer is about $51 million.

Benton Harbor, Mich.-based Whirlpool announced Aug. 28 it would close its Evansville, Ind., plant, eliminating about 1,100 full-time jobs by mid-2010. The Evansville plant primarily makes top freezer refrigerators, with that production being moved to the company’s plant in Mexico. The company said its icemaker production and Refrigeration Product Development Center — which employs about 300 — in Evansville will “be relocated to a company-owned site yet to be determined.”

Whirlpool officials confirmed that they are in discussions with Arkansas and local economic development officials about the possibility of moving some of the operations to the company’s large refrigerator manufacturing plant in Fort Smith. The Fort Smith plant, which employed around 4,500 in early 2006 but employs about 1,000 now, would have the capacity to absorb new production.

In a filing with the U.S. Securities and Exchange Commission, Whirlpool on Monday said the plant closing would cost $51 million — $21 million in employee termination costs, $13 million in equipment relocation costs, $5 million in asset impairment costs, and $12 million in other associated costs.

By way of financial perspective, Whirlpool reported 2008 net income of $418 million on total revenue of $18.9 billion. The company employed about 70,000 worldwide as of Dec. 31, 2008.

Whirlpool said $21 million of the cost will impact 2009 results, with $27 million to hit in 2010 and $3 million in 2011.