Daimler closing Ontario truck plant

Daimler Trucks North America LLC said Tuesday its St. Thomas, Ont. plant will cease production early next year as it discontinues its Sterling brand "in response to continuing depressed demand."

The closing will result in the permanent layoff of 1,350 unionized workers by next March.

The St.Thomas location, approximately 200 kilometres southwest of Toronto, will cease "truck manufacturing operations in March 2009, concurrent with the expiration of the existing agreement with the Canadian Auto Workers members employed there," Stuttgart, Germany-based Daimler said in a news release.

The plant manufactures Sterling medium and heavy-duty trucks for commercial use.