The plug has been pulled on a major auto parts investment in Chatham-Kent.
Magna International has announced that it has cancelled plans to expand its St.Thomas operations with a 170,000 square foot facility in Chatham, which would have produced battery enclosures for electric vehicles.
The company said adjustments in schedules have opened up more capacity at its Formet Industries plant in St. Thomas, allowing Magna to keep the electric vehicle product at the current facility.
“It is important that we leverage existing capacity and know-how with a complex product like battery enclosures, which is a completely new product area for Magna, and one that is important for every electric vehicle,” said Mark Johnson, group general manager, in a statement on Thursday.
Magna initially announced on March 30 that the company intended to open a new plant in Chatham on Irwin Street at the former Crown Cork & Seal property. The $50 million to $100 million investment in Chatham-Kent was expected to create up to 150 new jobs for the region.
Magna officials said the company is planning to retain the facility in Chatham for additional business as needed.
“Chatham remains on our radar screen as we look for more opportunities in the future,” said Johnson.
