ROME (Reuters) - U.S. white goods group Whirlpool (N:WHR) announced on Thursday it would invest 500 million euros ($535.25 million) over four years in Italy as part of a restructuring plan that would see 1,350 redundancies.
Whirlpool, which is absorbing the operations of Italy's Indesit, met Italian government officials on Thursday to present new investment plans it said were aimed at securing the long term future of its operations in the country.
The plan aimed at "improving efficiencies and capacity utilization and integrating its manufacturing operations," Whirlpool said in a statement. It would include the closure of some sites with 400 extra layoffs (described by the company as "the lowest possible level") in addition to 950 redundancies already planned at the time it acquired Indesit in July last year.
A statement from Italy's industry ministry said the government noted the positive aspects of the plan, which should help bring badly needed investment and return production to Italy from China, Poland and Turkey.
But it added that it had "expressed strong opposition over the aspects connected to employment and the impact on jobs in various sites, some of them in areas of the country already affected by deindustrialisation."
Whirlpool said it would meet unions on April 20 for detailed discussion of the plans, which include the closure of the Carinaro site near Naples with the loss of 800 jobs in a region with one of the highest unemployment in Italy.
While Italian industry has hemorrhaged jobs during years of recession, the possible return of some production capacity is welcome news for a country whose once-flourishing white goods sector has declined sharply in recent years due to cheaper foreign competition.
A large part of the 500 million euros earmarked for the next four years would be aimed at building up production in Italy through a specialized network of factories and extra investment in research and development, Whirlpool said.
According to metalworkers union FIM, which was present at the meeting in Rome, the plans would see production of microwave ovens currently located in China moved to Cassinetta, north of Milan, while a plant near Fabriano in central Italy would take production of cooking surfaces from Poland.
Production of clothes dryers currently based in Turkey would be brought to Comunanza, in central Italy, while high capacity washing machines would be produced in Naples.