The Canadian automotive industry is shuttering its main manufacturing facility for three months and its operations will be replaced by a new supplier in China.
In a statement, the Automotive Parts and Equipment Corporation said it is closing the factory in Mississauga, Ont., as part of an agreement to move production to China.
The company said it will provide the workers and equipment they require and will continue to sell products from its Mississauga factory.
It said it plans to hire approximately 1,400 people to help with the transition and has committed to continue to invest in Canada to ensure its competitiveness.
The plant will be the largest employer in the Canadian automotive supply chain and employs about 5,500 people.
It also announced plans to reduce its manufacturing footprint and to hire a third-party supplier.
The automaker said it expects to hire roughly 200 workers in the area in the coming weeks.