According to foreign media reports, Mexican auto parts supplier Nemak said on July 17 that after losing a Chinese customer, they will close the company's manufacturing plant in Windsor, Canada in mid-2020.
The company said in a statement: "We expected a Chinese customer to suspend an export plan, so we made this decision. After the Chinese customer exits, the plant will have a capacity utilization rate of less than 10% by 2020. "
Nemak CEO Armando Tamez said: "We are very grateful to the many people who have contributed to the business of the Windsor plant over the years and we will do our best to support them during this period . "
Nemak is a member of the Alfa Group of Mexico. In 2015, Nemak invested nearly $ 15 million with the Ontario Province of Ontario to build the Windsor City factory, which at the time created 80 jobs in Windsor. The company said that Windsor's plant generates approximately 1% of its annual revenue. The plant has 270 employees and is responsible for the production of engine cylinders.
Unifor Local 200 union chairman John D'Agnolo told the media that Nemak's decision to close the plant was the result of reduced supply demand at GM's Shanghai plant. On July 16, D'Agnolo met with Nemak's leadership. He revealed: "They told me that the company's sales have experienced a serious decline." He also mentioned that Nemak had conducted a Layoffs. In February 2019, the company re-employed some of its laid-off employees, but shortly after that, the company made another large-scale layoff.
According to local media reports, approximately 90% of the cylinders produced at the Nemak Windsor plant are supplied to GM's Shanghai plant for Cadillac brand vehicles. Two years ago, the Canadian federal government just provided Nemak with $ 3 million in funding to develop its new lightweight driveline technology.