Tenneco is closing its auto parts manufacturing plant in Owen Sound.
The company says the closure is part of a restructuring initiative to respond to changing market conditions.
A spokesperson for Tenneco says the Owen Sound facility currently employs 494 people.
The company expects the plant to be completely closed by mid-2020.
"We recognize the impact this action will have on our employees, and are working with the community to provide transition assistance for all affected employees, including some opportunities to transfer to other Tenneco locations," says a statement from the company.
Owen Sound Mayor Ian Boddy calls the closure disappointing news for the city.
"It's a big employer in Owen Sound," Boddy says. "They've been here a long time and our hearts go out to the families and the workers who will lose their jobs."
Boddy says the city will work with Tenneco and its employees in the coming weeks to ensure all available re-employment and training resources are made available.
Mayor Boddy acknowledges the plant closure will affect the local economy and says efforts are always ongoing to attract new industry to Owen Sound.
"It will have an impact," Boddy explains. "We certainly appreciate Tenneco is giving everyone advance notice when they're talking about (closing the plant) in the second term of 2020."
In a news release posted to its website, Tenneco says the closure of the Owen Sound plant -- as well as one in Georgia -- will result in between $20-million to $25-million in annual savings.
The company plans to centralize its business from the two closed plants at its facility in Ohio.