Magna shutting down Nova Scotia auto-parts plant

Magna Powertrain is closing its auto-parts manufacturing plant in Cape Breton next year, throwing 260 people out of work.

The employees of Precision Finished Components were told Tuesday afternoon that there will be a gradual shutdown over 2009, with the North Sydney plant closing by the end of the year.

Magna officials had called an all-staff meeting to deliver the news.

"You could cut the tension with a knife in there, for sure," said Jennifer Tobin, one of the workers who will be out of a job.

"I'm only a term employee. I've been here for about a year and half. But to hear that news, that's disappointing."

Coun. Gordon MacLeod, who represents the area on municipal council, wonders where the Magna workers will find other jobs.

"They can't go down the road here and find another plant that's gonna hire anybody at the rate that they're getting here. I think they're probably 10 to 20 per cent above the average rate," MacLeod said.

Magna officials were not granting interviews.

Closure based on financial status, business

In a release, the company says it will "transition" work to other Magna Powertrain facilities starting this month, but didn't give details.

"The difficult decision to close the facility came after a careful evaluation of the facility’s financial status, future business and open capacity in other facilities," it says.

"Those factors, combined with the difficult economic conditions facing the North American auto industry due to reduced domestic production and customer demands, have made the manufacturing facility no longer viable."

The North Sydney plant makes powertrain parts, mainly for GM vehicles. It opened in 1987, and has received nearly $7 million in federal loans and grants.

Magna says workers will get severance packages based on years of work for the company.

Those with the most seniority will stay on the longest.