The up-and-down cycle of the auto industry have taken its toll on a Grimsby manufacturing facility.

Tuthill Transport Technologies, located on the South Service Road in Grimsby, will be closing its doors effective June 27, according to Lynn Engel, group vice-president of sales and marketing.

The Grimsby manufacturing plant produces trailer suspensions for commercial vehicles and is known for its Reyco Granning brand.

"The entire commercial transportation industry is struggling," said Ms. Engel of the closure. "Based on the industry trend and direction we decided it was the right time to consolidate our U.S. and Canadian operations."

She added that the company is "very saddened" by the closure, which will affect 14 full-time workers at the plant -- about 10 per cent of the company's workforce.

She said it was the right time, though, looking at industry trends.

"We looked at the fact the transportation industry last year was down 30 to 40 per cent," said Ms. Engel.

She said that trend is expected to continue in 2008, by as much as 25 per cent over the next 12 to 15 months.

"Based on that we decided it was time to consolidate our operations to reduce our costs," Ms. Engel said.

Production from the Grimsby facility will be moved to Mount Vernon, Mo.

She said the company is offering severance packages to employees and have an offer to the union.

She said they are expected to make a decision based on the offer as early as this week.