TRW Automotive Inc. plans to close its airbag assembly plant in Cookeville by the end of 2007 and lay off about 390 employees starting in the middle of next year, the company said.

TRW said Thursday that increasing costs and the need to remain competitive for new business were the main reasons for the plant's shutdown.

"The pressures in the marketplace require us to make difficult decisions to remain competitive in the future," said Dennie Boyer, vice president of TRW's North America occupant safety systems. "This decision is not a reflection of the Cookeville operation or its work force."