United Technologies Corp has reached a deal with President-elect Donald Trump and Vice President-elect Mike Pence to keep close to 1,000 jobs at its Carrier Corp air conditioner plant in Indianapolis, roughly halving the number of U.S. jobs it planned to move to Mexico.
The deal, announced by Carrier on Twitter late on Tuesday, is a victory for Trump, who campaigned hard on keeping jobs in the United States and specifically criticized Carrier for shipping jobs overseas, messages which appealed to blue-collar workers in the Midwest.
Company officials, Trump and Pence, who is the governor of Indiana, will announce some of the deal's terms on Thursday, a source familiar with the matter told Reuters.
Indiana state officials were involved in the talks, but it was unclear what, if any, inducements the state may have made to encourage Carrier to keep the jobs in the United States.
Carrier's parent, United Technologies, has a strong incentive to keep good relations with Trump and his incoming administration, given that a portion of its estimated $57 billion revenue this year will come through U.S. military contracts at its Pratt & Whitney and UTC Aerospace Systems units.