THE Whirlpool Corporation today announced the closure of its washing machine manufacturing plant in Shanghai as a part of its consolidation plan to optimize the use of existing resources and cut costs in face of shrinking profits.

The move will result in the elimination of about 600 positions. The company's other commercial and administrative operations are unaffected by this change, according to a statement posted on the company's Website. The remaining operations employ approximately 480 people.

"This consolidation is difficult but necessary," said Paulo F.M.O. Periquito, president of Whirlpool International. "We believe these moves will enable us to speed up innovation and continue to build the best quality and best cost products for our customers in China."
The production of washing machines will be consolidated into a plant in Zhejiang Province, which it runs with Guangdong-based Hisense Kelon. The facility, which also manufactures refrigerators, will create 900 new jobs by end of 2009.