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Magna Declines Federal Aid To Keep N.Y. Plant Open

Canadian company Magna International is declining an offer of federal loans to keep a suburban Syracuse 1,400 worker-auto parts plant open.

SYRACUSE, N.Y. (AP) -- Magna International is declining an offer of federal loans to keep a suburban Syracuse auto parts plant open.

The Canadian company says money isn't the only issue and flexibility in work rules and other operational changes it has sought wouldn't keep the plant competitive.

U.S. Sen. Charles Schumer was hoping the plant could use some of the $5 billion in taxpayer-funded loans meant for the domestic auto parts industry.

Union workers have twice rejected concession-packed contracts that could have kept the struggling plant open. The company says it will continue with plans to close the factory, which makes parts for trucks and sport utility vehicles and employs 1,400 workers.