York Plant To Benefit From Company Buyout

By Randall Turk

The Norman Transcript

For the 1,100 production and administrative employees at the York plant in Norman, this is better than it usually gets.

"The most significant thing is, our business unit will remain headquartered in Norman," said Becky Payton, vice president of human relations. "We've been getting information to our employees on the new company and how it operates."

Normally, the horizon looks much bleaker for any company swallowed up by another. While some consolidation has occurred in other York units after the company buyout was completed earlier this month, the Norman plant will operate under a full head of steam, with expansion anticipated in the New Year, Payton said.

In late August, Johnson Controls, Inc. (JCI) announced plans to acquire York International Corporation for $3.2 billion. Chief executives of both companies said the deal would strengthen the combined company's position in the $200 billion worldwide heating and air conditioning market. The two companies manufactured complementary products. The interface will occur soon in products turned out by the Norman plant, Payton said.

Prior to acquiring York, Johnson Controls, headquartered in Milwaukee, had 125,000 employees worldwide and 26 manufacturing plants in nine countries.

JCI manufactures integrated automotive seating and interior systems and batteries. It also makes control systems to regulate interior environment, energy usage and security in commercial buildings. The company had revenues of $26.6 billion last year.

York, with sales of $5 billion this year, is a global supplier of heating, ventilating, air conditioning and refrigeration equipment. The Norman plant has served as York's worldwide unitary products headquarters, manufacturing residential and light commercial air conditioning systems.

York has been producing products in Norman since 1981, when it took over the plant built by Westinghouse in 1971. The plant now has about 524,000 square feet of manufacturing, laboratory and administrative space.

The Norman plant, now with 800 production workers and 300 executives and staff, has retained all employees, Payton said. "Rumors of a layoff are unfounded. Business has been very good, and we're hiring."

JCI purchased the York brand and will continue to use the name, Payton said. The York headquarters in York, Penn. has been closed and moved to Milwaukee. Some corporate staff positions were eliminated in the consolidation, she said."

In the future, JCI will design control systems for our units," Payton said. "We're planning to see some expansion."

After the first of the year, she said, the Norman plant will put on another 30 workers, mostly in manufacturing. "We think the future looks bright for us in Norman."