Municipal administration was caught off guard after plans were scrapped to bring a multimillion-dollar auto parts facility to Chatham-Kent.
Tony Haddad, the interim chief administrative officer for CK, said municipal staff, council and the mayor were all disappointed after Magna International announced last week that it would no longer be expanding its St.Thomas operations to a facility in Chatham.
“It was totally unexpected based on their initial announcement that they would be here,” said Haddad.
The 170,000 square foot facility on Irwin Street would have produced battery enclosures for electric vehicles, creating up to 150 jobs.
Magna initially announced on March 30 that the company intended to invest $50 million to $100 million to open the new plant. However, on Thursday the company said adjustments in schedules had opened up more capacity at its plant in St. Thomas, allowing Magna to keep the electric vehicle product at the current facility.
“We are not aware of any red tape or barriers or obstacles from the municipality’s side that would have lent itself to [Magna’s] decision,” said Haddad. “I’m confident our team worked closely with the Magna folks to address all of their needs.”
Magna officials said the company will retain the facility in Chatham for additional business as needed.
“We have established a very good relationship with Magna and they did make a commitment with the property and securing that property in Chatham-Kent, so hopefully there will be future potential for that site as their business model changes over time,” said Haddad.
