Air-con sector strife

ALMOST six months after 150 workers lost their jobs following the closure of Carrier Air Conditioning's Redcliff factory, the company is overhauling its ownership structure.

Carrier's transfer of its heating, ventilating, air-conditioning and after-sales operations to joint venture AHI Carrier, based in the United Arab Emirates, coincides with the sale of two local air-conditioning businesses that have run into financial problems.

The 40-year-old Leederville company Elvins Air Conditioning, and 17-year-old Midvale-based Atlanta Group, which has an air-conditioning subsidiary, are in receivership and liquidation, respectively.

"There is a traditional downturn during the winter but going out of business is another step altogether," a Communications Electrical Plumbing Union representative said.

Carrier blamed the economic slump for its decision to close the Redcliff factory earlier this year, citing an internal study that concluded the factory was not a viable long-term business.

In a statement sent to WA Business News, the company said local Carrier customers would still be serviced.

"Business operations will continue as usual while a smooth transition is implemented over the coming months," the statement said.

"This is simply a change in the ownership structure. Hence there will be no day-to-day operational impact."

The company, which is known for its large industrial air-conditioning installations, no longer has operational factories in WA, but retains a sales, service and spare parts business based in Perth.

Receiver PPB is offloading the business and/or assets of Elvins, which was established in 1969 and historically offers its services to both commercial developments and homeowners.

WHK Horwath is selling Atlanta Group's plant, equipment and stock.