Magna to close New York gear assembly plant, 1,400 jobs will be cut

Magna International will be closing its gear assembly plant in Syracuse, New York. The Canadian auto parts maker said Wednesday the move comes after workers rejected a contract the company said was necessary to keep the factory running and to keep it competitive.

Magna said a total of 1,400 jobs at the New Process Gear facility will be eliminated. It said that it was disappointed that employees had rejected the contract which would have given the facility a future. There is no word on what agreement was rejected.

The New Process Gear facility will take some time to shut down as Magna is holding talks with employees, suppliers and its customers.

Source: Reuters