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York plant shut down

As part of a strategy to align its global manufacturing footprint and production resources, US-based Johnson Controls, the global provider of integrated products, systems and services in the buildings market, has closed its York Industrial (Thailand) manufacturing facility in Chon Buri's Laem Chabang.

Published on September 7, 2007



With the closure, all the building, machinery and other fixed assets have been sold to SNC Former, a local company.

The company is working with other Johnson Controls entities, SNC and local industries within the area on employment opportunities for the 331 employees. The company had engaged local government authorities and the workers' union in the York Industrial plant closure process.

Generous severance compensation at more than Thai labour laws have been offered, the parent firm said.

"Johnson Controls has a global strategy designed to align our footprint and manufacturing resources to achieve cost efficiencies as well as economies of scale," the chief officer at Johnson Controls' regional communications office said yesterday.

Johnson Controls has also factories in China, India and Malaysia for many types of air-conditioning products and building-efficiency systems.

"Only a fraction of the plant's production was sold in Thailand, so its closure will not affect our sales and service business in the Thailand market. Johnson Controls remains committed to Thailand, where we have more than 500 employees in seven offices," he said.

Johnson Controls also agreed to increase its employee compensation package by 30-40 per cent following consultations with the Chon Buri governor.

Johnson Controls said it was committed to continuing its focus on offering its Thai customers sustainable, one-stop life-cycle solutions, from heating, ventilation, air conditioning and refrigeration systems including chillers, mini split, building controls, fire and security solutions, as well as services to ensure comfortable and cost-effective buildings.

The Nation


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