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Lightweighting solutions provider, Nemak is to stop manufacturing operations in Windsor, Canada, by mid-2020.

The plant represents around 1% of Nemak’s consolidated revenues.

The decision is a result of the early phase-out of an export programme with an unnamed customer in China, which is expected to bring capacity utilisation at the plant to less than 10% by 2020.

“Given our outlook on capacity utilisation and volumes in Windsor, we have made the decision to end production at this facility,” said Nemak CEO, Armando Tamez.

“We are deeply grateful to the many people who have contributed to our business in Windsor over the years and we will make every effort to support them during this period.”

The plant has 270 employees and produces engine blocks.

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By GlobalData

Nemak is a provider of lightweighting solutions for the global automotive industry, specialising in the development and manufacturing of aluminium components for powertrain and body structure applications.

The company employs more than 23,000 people at 38 facilities worldwide. In 2018, it generated revenues of US$4.7bn.