Just over two months after it was announced, Magna International now says that it will not be bringing a new auto parts plant to Chatham.
On March 30, the company announced that it would be expanding operations in the area with a new facility that was intended to produce battery enclosures for the Ford F150 Lightning electric truck.
The move was an extension of Magna's current operations in St. Thomas to support additional battery enclosures business for the electric vehicle market.
However, in a media statement released on Thursday, the company announced that plans for the new plant have since changed and it has been able to find additional capacity within its St. Thomas facility to accommodate the new production that had been earmarked for Chatham.
"Since that time, adjustments in schedules have opened up more capacity at its Formet (St. Thomas) facility and therefore, the company has made the decision to retain the EV-related battery product in the current facility," the statement read. "The company will look to leverage the Chatham facility for additional business as needed."
The new facility was set to be housed at the old Crown Cork & Seal building at 125 Irwin Street, with production planned to begin this fall and bring up to 150 new jobs for the area.
“It is important that we leverage existing capacity and know-how with a complex product like battery enclosures, which is a completely new product area for Magna, and one that is important for every electric vehicle,” said Group General Manager Mark Johnson. “Thank you to the community leaders of Chatham who have been great to work with throughout the initial planning process. Chatham remains on our radar screen as we look for more opportunities in the future.”
Director of Economic Development Services for Chatham-Kent Stuart McFadden said that while the news was disappointing, the door is still open for future business, adding that the municipality has built a great relationship with Magna over the past 10 months.
“We look forward to working with them on new opportunities as they arise,” said McFadden. “It is our understanding that Magna will be honouring its lease on the newly renovated Chatham facility, retaining a presence here and reaffirming that our community remains a viable potential location for its future business needs."
Chatham-Kent Mayor Darrin Canniff echoed many of McFadden's thoughts.
“While we are very disappointed, we understand businesses must be able to manage their operations in the most effective way possible,” said Canniff. “We are gratified by the company’s statement thanking our staff and community leaders who exceeded Magna’s needs throughout the planning process.”
