TILBURY, Ont. - The ArvinMeritor plant in Tilbury, Ont., which makes brakes for the trucking industry, is shutting down.
The Canadian Auto Workers union says it was informed of the decision to close June 3 after a meeting with the company Tuesday morning.
Plant chairman Mike Byrne says despite cost savings offered by the union in a new contract, ArvinMeritor wants to move ahead with the plant closure.
Byrne says the company blames a lack of production and overcapacity in the industry.
The plant, which manufactures brakes for truck companies including Navistar and Sterling, currently employs around 100 people, with another 140 workers already on layoff.
Last fall, ArvinMeritor announced the shutdown of a 500-employee factory in Toronto, shifting the work to Mexico.