Nemak has announced it is closing its operations in Windsor by the middle of next year.
The plant in west Windsor has 270 employees and produces engine blocks.
The company issued a statement on Tuesday saying the decision is a result of the early phase-out of an export program with a customer in China, which is expected to bring capacity utilization at the plant down to less than 10 per cent by 2020.
"Given our outlook on capacity utilization and volumes in Windsor, we have made the decision to end production at this facility,” said Armando Tamez, CEO of Nemak. "We are deeply grateful to the many people who have contributed to our business in Windsor over the years and we will make every effort to support them during this period.”
The plant represents approximately one per cent of Nemak’s consolidated revenues.