Fisher & Paykel, the New Zealand appliance manufacturer well known for it’s dishwasher drawers and washing machines is consolidating it’s manufacturing and moving to Reynosa, Mexico, just south of the U.S. border.

The range and DishDrawer factory in Dunedin, New Zealand, the refrigeration plant in Brisbane, Australia and the DCS manufacturing plant in Huntington Beach will be relocated to the new facility in the next 12-18 months. The DCS move is expected to be completed by the end of the year, and individual manufacturing lines will be shifted separately to reduce the impact on warehouse inventory. The U.S. operation will continue to employ sales and marketing, customer services, head office and an engineering staff of around 340 employees. The financial benefit of the DCS move is expected to be $6.6 million per year with a one off cost of $7 million, both at pre-tax level.

“This expansion is designed to streamline our manufacturing costs, and bring increased consistency and efficiency to the company’s production process in the U.S. market, “ said Mike Goadby, North American President for Fisher & Paykel Appliances. “It’s an emotional time for all of us, but this move will make us more competitive in the U.S. and strengthen our distribution efforts through making them more efficient.”

With the Reynosa acquisition and the new North American DishDrawer line announced last year, the financial benefits of the new strategy are expected to be around $50 million per year, at a one off cost of approximately $100 million. The cost of the move will be offset by the sale of surplus property in Australia and New Zealand, which could total approximately $100 million.

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