Canadian auto parts company Magna International has agreed to meet with American officials to discuss a last-minute effort to keep a plant in New York from closing, Toronto’s Globe and Mail paper reported.

New York Democrat Charles Schumer said the New Process Gear plant near Syracuse could receive some of the US$5bn in taxpayer-funded loans earmarked for the US auto parts industry.

But a Magna spokeswoman said she was not aware of the discussions and could not comment and that the shutdown of the plant, which employs 1,400, is continuing.

Union workers have twice rejected concession-packed contracts that could have kept the struggling plant open.