Newspaper article THE JOURNAL RECORD

LSB Subsidiary to Build Heat Pumps for U.S. Firm

Newspaper article THE JOURNAL RECORD

LSB Subsidiary to Build Heat Pumps for U.S. Firm

Article excerpt

LSB Industries Inc.'s heat pump manufacturing subsidiary, Climate Master Inc., has signed a five-year agreement to manufacture heat pumps for original equipment of a major U.S. air conditioning company, LSB said Monday.

The additional private label production with the company, that cannot be publicly named, has the potential of increasing Climate Master's Oklahoma City employment 50 percent, should the production be moved to Oklahoma City, said Jack E. Golsen, LSB board chairman.

Climate Master will supply all of the customer's U.S. requirements of commercial and residential water source heat pump products, which the customer will resell under its own brand name.

The agreement provides for Climate Master to buy all of the manufacturing operations and tooling equipment from a Tennessee plant in which the customer company now manufactures its existing line of water source heat pumps and to supply Climate Master's line of products, Golsen said.

"We haven't decided whether to bring the operation to Oklahoma City. The board of directors will be meeting in about 10 days in the third week of November to decide what to do. It would mean a significant increase in employment if we decide to bring it to Oklahoma City," Golsen said.

The Tennessee plant operations that Climate Master is acquiring in the production contract now employs between 140 and 150 people. The plant's land and building are not included in the contract, Golsen said.

Climate Master's Oklahoma City plant now employs about 300 people, he said.

"If the decision is made to move the operation to Oklahoma City, we probably would move only the key employees," he said.

Acquisition of the contract will push Climate Master's production of water source heat pumps to about 42 percent of the world production, he said.

"We are the world leader in production of water source heat pumps with about 29 percent of the market share. …

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