TILBURY, Ont. — The trickle effect on a shrinking southern Ontario automotive sector has caught up to ArvinMeritor as well.
According to media reports, the parts and component manufacturer is shuttering its Tilbury, Ont. commercial truck brake plant on June 3.
Plant chairman Mike Byrne says the Canadian Auto Workers and the company met to discuss possible cost savings in a new contract, but a deal couldn’t be reached.
The company warned the union late last year that it would close the facility if the CAW couldn’t agree to contract concessions.
It’s the second plant the company has closed in Ontario in the last 18 months. That St. Thomas facility assembled commercial truck drivelines.
The plant was a major supplier to Navistar International’s Chatham plant and Sterling’s St. Thomas facility. The latter plant will be closed early next month and the International Truck facility has significantly reduced production capacity, cutting its assembly staff down to just 200 workers.
The ArvinMeritor plant currently employs around 100 people, with another 140 workers already on layoff.
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