Released on February 14, 2009

According to local news reports, Nemak of Canada officially closed its Essex Aluminum Plant, Windsor, Ontario, Canada, on Feb. 13, just more than one year after announcing the intention.

On Feb. 5, 2008, the company said it would close the plant, which produces aluminum cylinder heads for Ford Motor Co., sometime in the first quarter of 2009 because of “global pressures.”

According to a company spokesperson, the plant was closed due to price demands placed on it by OEMs, the rising value of the Canadian dollar and increased pressures from global competition.

“Just a few short years ago, [the Canadian dollar was weaker than the U.S. dollar] and it was a real benefit to do business in Canada,” said Robert Smillie, a senior advisor to Nemak, during an interview one year ago. “We no longer have that advantage.”

The Essex plant was built in 1981 by Ford but became a joint venture when Nemak purchased a controlling interest in 2000. At the end, Ford owned less than 7% of the venture, according to Smillie.

The Essex plant manufactured only cylinder heads, and CAW Local 200 President Mike Vince told the Windsor Star that the work has been picked up by Nemak’s plants in Mexico.

The downsizing comes on the heels of several significant expansions for Nemak in 2007. The company purchased the majority of the casting properties of Teksid Aluminum, Detroit, and the European operations of Hydro Aluminum, Oslo, Norway, in March of that year, making it the world’s largest producer of metal castings for automotive engines. It then purchased Castech, Saltillo, Mexico, a nearby competitor, in May 2007.