Magna unit to shut Canada auto-parts plant: report

Tue Dec 2, 2008 5:13pm EST
 
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TORONTO (Reuters) - A subsidiary of Magna International is closing an auto-parts plant in the province of Nova Scotia next year, leading to 260 lost jobs, CBC News reported on Tuesday.

The employees were told Tuesday afternoon that a gradual shutdown during 2009 is planned, with the plant closing by the end of that year, CBC News reported on its Web site.

The report comes about a week after another Magna unit said it plans to close two plants in the province of Ontario, cutting about 850 jobs.

The Nova Scotia plant makes powertrain parts, mainly for General Motors vehicles. It opened in 1987 and has received nearly C$7 million in federal loans and grants, CBC News reported.

Magna's class A shares fell 29 Canadian cents to close at C$33.53 on the Toronto Stock Exchange.

(Reporting by Wojtek Dabrowski; editing by Frank McGurty)