LITTLE ROCK — Whirlpool Corp. of Benton Harbor, Mich., confirmed Thursday that it has a likely buyer for its Fort Smith plant that ceased production of side-by-side refrigerators on June 28, leaving about 800 workers without jobs.
The potential buyer is a Canadian firm that handles asset liquidations.
“With help from several key real estate experts and economic development officials in the area, Whirlpool has entered into an agreement to sell the 2.19 million square-foot facility with Infinity Asset Solutions Inc. The company anticipates the process will be complete by the end of the year,” Kristine Vernier, a Whirlpool spokesman, said in an e-mailed statement.
Infinity Asset Solutions, based in Concord, Ontario, disposes of assets for private and public companies, including financial institutions and leasing firms. The company did not return a phone call seeking information about its plans for the Whirlpool plant.
Whirlpool had manufacturing operations at the site for 50 years and had produced countless thousands of refrigerators and other appliances by the time it ceased production. Six years ago, the factory employed 4,600 people.
But Whirlpool and other manufacturers have gradually shifted production to other countries. The Fort Smith plant’s work force peaked in August 2005. In 2006, the plant’s work force dropped below 4,000 when the company opened a plant in Ramos Arizpe in the Mexican state of Coahuila.
More layoffs came in subsequent years, with employment at the plant dipping to 1,450 by 2009.
July’s unemployment rate in the Fort Smith Metropolitan Statistical Area stood at 8.5 percent, down from 8.8 percent a year earlier.
Fort Smith Mayor Sandy Sanders said Thursday that the plant was under contract but the deal had not been finalized. He said he’s hopeful the sale will go through after the due-diligence analysis is complete.
Sanders said he’s encouraged by the news and hopes the old Whirlpool plant will eventually become the home of a company that will bring jobs to the area. He said the city, the Fort Smith Regional Chamber of Commerce, the Arkansas Economic Development Commission and others were actively seeking a buyer for the plant and will continue those efforts until a deal is completed.
Fort Smith Chamber of Commerce President Paul Harvel was out of state Thursday, according to a chamber spokesman. She said the chamber had no comment on the potential sale of the plant.
Chuck Fawcett, a Realtor and developer in Fort Smith, said the deal was so “hush-hush” that he didn’t know about it until Thursday morning. He said that when he heard the news, he was “ecstatic.”
“This is a shot in the arm for Fort Smith, just knowing it is not going to sit vacant,” said Fawcett, whose agency handles both commercial and residential real estate. “It’s such a great plant. I hope there will be another industry going in there, soon.”
As for the possibility that the new owner will sell off parts of the plant, Fawcett remained optimistic.
“Whirlpool has already been dismantling the stuff inside,” he said. “I’d hate to see a building like that be dismantled and sold off as scrap metal.”
Mike Reynolds, head of the engineering department at the University of Arkansas at Fort Smith, said some equipment in the plant may be of use to a future owner, but added, “it’s often difficult to start with what’s in place.” Some of the equipment is fairly low technology, such as conveyor belts.
“I think, if you just looked at it as manufacturing space, it’s probably more marketable,” he said.
Information for this article was contributed by John Magsam and Chris Branam of the Arkansas Democrat-Gazette.
Business, Pages 27 on 09/07/2012