MANUFACTURINGJohnson Controls to close Carrollton plant
Johnson Controls Inc. will close its Ruskin Rooftop Systems manufacturing plant in Carrollton by the end of September, putting 200 employees out of work.
The Wisconsin-based company notified the Texas Workforce Commission that it plans to begin eliminating jobs on March 31, followed by additional cuts in July and August. The notice to TWC didn’t include a reason for the plant closing.
But the company, in an emailed statement provided by spokesman Charles Bickers to The Dallas Morning News, cited changing demand.
“Recent business conditions have changed production demand for Carrollton’s products, resulting in the decision to consolidate its operations and maximize our current equipment capacity elsewhere, including other Ruskin facilities,” the statement said.
The company said it will provide severance and other transitional support for affected employees.
Johnson Controls is a global giant in industrial building products, with 97,000 employees working at 2,000 locations worldwide. Its portfolio includes making, selling and installing heating, ventilation and air conditioning units, security products, and fire and suppression systems. Ruskin makes commercial HVAC equipment.
Its revenue fell about 7% in its 2020 fiscal year to $22.3 billion. Its profit also took a significant hit, dropping from $5.6 billion in 2019 to $631 million last year.
In its annual filing with the Securities and Exchange Commission, the company said it saw a decline in demand and volumes in its global businesses “as a result of the impact of efforts to contain the spread of COVID-19.”
“Specifically, the company experienced lower demand due to restricted access to customer sites to perform service and installation work as well as reduced discretionary capital spending by … customers,” according to the filing.
Last month, Johnson Controls said it was closing its downtown Milwaukee offices and shifting nearly 1,300 workers to its Glendale, Wis., campus.