A spokesperson with Carrier Corp. confirms to Inside INdiana Business the company is planning to relocate its Indianapolis manufacturing operations to a facility in Mexico. The company says the transition is expected to begin in 2017, and over the course of three years, affect 1,400 Hoosier jobs. The spokesperson says Carrier’s HVAC residential headquarters and engineering positions will stay in Marion County.

The timeline and other details are subject to discussions with United Steelworkers Local 1999, which represents many of the affected employees.

In a statement, Carrier HVAC Systems and Services North America President Chris Nelson said:

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.

Carrier says eligible employees could receive benefits related to their separation including a period of access to its Employee Scholar Program, which involves paid tuition, books and fees for furthering education.