Carrier announced a decision to move at least 1,400 jobs from Indianapolis to Mexico.

The heating, ventilating, air conditioning, and refrigeration system (HVAC) company will begin the process in 2017 and hopes to complete everything by 2019.

Carrier “employs 50,000 people in more than 180 countries.” They chose to close the Indianapolis operation because of cost.

Chris Nelson, Carrier’s president of HVAC systems and services for North America, published this statement:

This move is intended to address the challenges we continue to face in a rapidly changing HVAC industry, with the continued migration of the HVAC industry to Mexico, including our suppliers and competitors, and ongoing cost and pricing pressures driven, in part, by new regulatory requirements. Relocating our operations to a region where we have existing infrastructure and a strong supplier base will allow us to operate more cost effectively so that we can continue to produce high-quality HVAC products that are competitively positioned while continuing to meet customer needs. This decision is difficult and we recognize the impact on employees, their families and the community. We are committed to ensuring that our employees are treated respectfully and to working closely with their representatives throughout this transition.

“Today’s surprise announcement was without warning and incredibly disappointing,” said Mayor Joe Hogsett. “While I am obviously concerned about the economic impact, my top priority is the well-being of the hardworking families affected by this decision. A job lost in any part of our community affects us all, and I believe these are the times we must come together as one city to lift up our neighbors.”

Local union representatives will discuss the move with Carrier. Fox 59 reports that some “employees will be entitled to severance benefits, including access to the company’s Employee Scholar Program, which pays for tuition, books and fees at accredited higher education institutions.”