DALLAS, July 20 /PRNewswire-FirstCall/ -- Lennox International Inc.
(NYSE: LII) announced plans to open a new manufacturing operation in
Saltillo, Mexico under the name LII United Products. The manufacturing
lines responsible for Lennox-brand Merit series air conditioners and heat
pumps, as well as air handlers, will be shifted to Saltillo. The Merit
series is currently manufactured in Marshalltown, IA, while the CB26 air
handler is currently manufactured in Grenada, MS.
The three-year project is expected to break ground in the second half
of 2007, with initial production starting in the second quarter 2008 and
ramping up to full production by early 2010. The Saltillo operation is
anticipated to be 300,000 square feet and employ over 500 at full
production. The projected capital commitment is approximately $45 million
over three years and is expected to lead to cost reductions of over $13
million by 2009, increasing to over $20 million per annum by 2010.
"There is fierce competition for the growing business in the Sunbelt
region," said Todd Bluedorn, LII chief executive officer. "Our Merit series
offering is our primary Lennox-brand product line serving the Sunbelt
market, and we must produce quality products at the lowest costs to compete
in that market and grow our business. The Saltillo location offers
significant manufacturing and logistics cost advantages to help us expand
our capacity and flexibility to meet long-term demand and carry out our
Sunbelt growth strategies."
The company's current plans are for its remaining Lennox-branded
products, including all furnaces, its mid-tier Elite series cooling
products, and its premium line of Dave Lennox Signature Collection
products, to continue to be manufactured at its Marshalltown facility. "LII
began in Marshalltown, and still has deep roots there," Bluedorn said. "The
Marshalltown workforce is a high-quality workforce and will continue to be
involved in the production of our more complex product lines.
"The markets in which we compete demand the highest quality products
and the most effective distribution, at the lowest possible cost. Moving
forward, one of our top priorities will be to continually review all of our
manufacturing and sourcing needs, finding opportunities to lower our costs
and more effectively serve our customers."
Lennox International Inc., through its subsidiaries, is a global leader
in the heating, air conditioning, and refrigeration markets. Lennox
International stock is traded on the New York Stock Exchange under the
symbol "LII". Additional information is available at:
http://www.lennoxinternational.com or by contacting Karen O'Shea, vice
president, communications and public relations, at 972-497-5172.
This news release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995. These
statements are subject to numerous risks and uncertainties that could cause
actual results to differ materially from such statements. For information
concerning these risks and uncertainties, see LII's publicly available
filings with the Securities and Exchange Commission. LII disclaims any
intention or obligation to update or revise any forward-looking statements,
whether as a result of new information, future events or otherwise.
SOURCE Lennox International Inc.