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Feb 1, 2009 12:00 PM

Gates Canada Inc will close its London, Ontario, Canada power transmission facility in response to the difficult economic climate that has resulted in declining sales volumes, continued pricing pressures, and higher raw material costs.

“This is a difficult decision for any company to make, especially because of its impact on our workforce,” said Robert Hart, vice president-manufacturing, Gates Powertrain. “Gates will make every effort to communicate effectively and support our valued employees through these necessary steps.”

The company plans to transition a portion of its operations to its facility in Windsor, Ontario, by the end of the second quarter of 2009. Full closure of the facility is expected by December 2009 to allow for completion of production to meet customer requirements. There are 179 associates at the London facility, which has been in operation since its move from Strathroy, Ontario, in 1999.