GUELPH, Ont. (AP) — The Collins & Aikman Canada Inc. plant in Guelph will close, forcing just over 500 people out of work.
The struggling automotive parts manufacturer has recently seen a steep decline in its contracts with major automakers.
Last year the company began to lay off dozens of employees and went into bankruptcy protection.
About 510 employees remain at the plant and the date of its closure is not yet known for certain.
Guelph Mayor Karen Farbridge said while there are significant challenges in the manufacturing sector, the city's diversified economy should be able to weather the storm.
Guelph MPP Liz Sandals said Collins & Aikman Canada's financial difficulties have been known for some time, and she was not surprised to learn of the plant closure.
''It's always very, very distressing to learn that people are losing their jobs,'' Sandals said.
With help from the province, she added, Collins & Aikman Canada has been making arrangements to retrain its laid-off workers.
