Trump-Carrier Deal Gives Company $7 Million in State Incentives

(Bloomberg) -- The agreement between President-elect Donald Trump and Carrier Corp. to keep an Indiana factory open includes a state incentive package of about $7 million over multiple years, the company said.

The deal is “contingent upon factors including employment, job retention and capital investment,” according to an e-mailed statement from Carrier. Trump is set to announce details of the agreement Thursday at an event with Vice President-elect Mike Pence, the governor of Indiana. The deal covers about 1,100 workers, including engineering and headquarters employees.

Carrier, which makes heating and air-conditioning equipment, said earlier this year it would move the gas-furnace plant’s operations to Mexico, eliminating 1,400 U.S. jobs, to keep production costs competitive. The decision garnered national notice after a worker’s cell-phone video of the announcement to employees took off on social media.

Trump seized on the announcement, saying he would impose a hefty tax on Carrier’s Mexican-made products. He criticized the company repeatedly on the stump and held it up as an example of the ways global trade hurts U.S. workers.

With the deal, Trump claims one of his biggest victories since the election and makes good on a campaign pledge to stem job losses from corporate decisions to shift production abroad. Carrier is a unit of United Technologies Corp., a major defense contractor that also makes jet engines.

The Wall Street Journal reported earlier that the incentives would cover a 10-year period.

To contact the reporter on this story: Richard Clough in New York at rclough9@bloomberg.net. To contact the editors responsible for this story: Brendan Case at bcase4@bloomberg.net, Tony Robinson