American Axle and Manufacturing Holdings is closing its New York gear making plant following the failure of union members to ratify a new contract late last month.

The Cheektowaga plant, which employs about 90 hourly and salaried workers, will be shut on or after 26 February, American Axle said in a statement cited by Reuters.

The company will continue to honor the labour agreements in place until 25 February, 2012, the supplier said.

Reuters noted that, last July, the company had said that it would close its plant in Detroit next February after it failed to secure union worker approval for a 33% cut in pay and benefits.

The company had also flagged the possibility of closing Cheektowaga plant should labour negotiations fail.