Lear confirms closure of Kitchener plant; shutdown date not known

The Lear Corporation auto parts plant on Manitou Drive in Kitchener is pictured on Wednesday, May 6, 2015. (Terry Kelly / CTV Kitchener)

A lack of new business is ultimately to blame for the Lear Corporation’s decision to close its plant in south Kitchener, a company spokesperson says.

“We do not have sufficient replacement business to continue operations,” Mel Stephens told CTV News in an email.

“We appreciate the support of the local community and the many dedicated workers that have served Lear over the years. We are sorry that we are not able to continue at Kitchener.”

Once a thriving plant that employed about 1,000 people, Lear has seen its local workforce shrink to 150 in recent years.

Of late, its sole purpose was to produce metal parts for seats used in Chrysler vehicles, which were then shipped to the automaker’s assembly plant in Brampton.

Although the company’s collective agreement with the union representing its workers expires next January, both union and Lear officials say that doesn’t necessarily represent a closure date.

The Manitou Drive plant previously found itself at risk of closure in 2012, but was kept open when the union agreed to a new wage structure, under which new hires would be paid $19.50 per hour.