Maersk Container Industry is closing its reefer factory in San Antonio, Chile and moving all manufacturing to its facility in Qingdao in northeast China.
“After careful review, we concluded that the consolidation of activities at one plant will provide a strengthened capacity utilisation and a simpler cost structure. This will in turn allow us to better serve our customers and focus on innovation responding to the growing demand for reefer container technology,” said Sean Fitzgerald, CEO of Maersk Container Industry.
The three-year-old Chilean factory employs 1,209 people.
In a release, Maersk admitted the reefer market has been suffering severe overcapacity recently.
“In the past several years, the reefer container market has changed fundamentally towards heavy overcapacity,” Maersk stated.
“The harsh reality is that to be competitive today requires us to adapt our operations constantly. Fundamental market factors have changed and so must we to grow with the market,” Fitzgerald said.
Maersk has one other container manufacturing site in China.