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Canadian Kitchen Cabinet Maker To Close

Canac Kitchens will shut its doors in Ontario next month, moving production to a factory in Statesville, N.C.

THORNHILL, Ont. (AP) -- Canac Kitchens, which has manufactured kitchen cabinets in a Thornhill, Ont., factory since 1967, will shut its doors next month.

The dollar has soared, making production more expensive, and the U.S. new-home market, one of Canac's biggest customers, is in a tailspin.

Around 400 employees will be let go when the plant closes, joining 600 colleagues who had been laid off since last September.

Production is moving to a U.S factory in Statesville, N.C.

The once-rural plant is now surrounded by urban sprawl filled with neighbors who have complained about fumes and noise.

Company president Ralph Howard says those conflicts are among the reasons for the closure, adding the decision to allow housing to grow up around manufacturing plants ''has not served the best interest of anyone.''

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