Auto parts supplier to close Ontario blow mold plant

French car components firm Inergy Automotive Systems has announced plans to close its blow molded fuel tank operations in Blenheim, Ont. by the end of 2008 and invest US$8.2 million to relocate to an existing facility in Adrian, Mich.

The closure of the Blenheim facility will mean the loss of approximately 170 jobs. In Adrian, meanwhile, the project is expected create 427 new jobs.

Due to downturns in the automotive industry the past few years, our sales have been reduced, Adrian plant manager Larry Towne said. We have four plants in North America Ontario, Adrian, North Dakota and in Mexico. This will combine two footprints into one. Adrian is a natural fit.

According to Inergy, a state tax credit of US$1.3 million over seven years helped the company to choose Michigan over South Carolina. The city of Adrian said it will support the project through a 12-year local tax abatement of about US$1.8 million. In addition, the South Central Michigan Works office and the Lenawee Chamber for Economic Development will support the project by providing recruiting, screening and job training assistance.

No additions to the Adrian facilitys exterior footprint will be necessary, Towne said. The operations will be phased in over the next five years, with the transition beginning once the paperwork is completed and preliminary planning is done.

Inergy Automotive Solutions is a global Tier One supplier of complete fuel systems and energy storage systems technologies.