Caterpillar pulls plug on London plant

(Updated video) The struggling Ontario economy has suffered yet another blow.

The Ontario government confirmed today Caterpillar will close its Electro-Motive plant in London.

The closure will affect 450 employees.

Electro-Motive had demanded pay cuts of up to 50 percent when it locked out the employees, who are represented by the Canadian Auto Workers.

The move comes just one day before the company was set to hold a job fair in Muncie, Indiana, where it has a lower-cost factory. Electro-motive is owned by U.S.-based Caterpillar, which recently announced record revenues of $60 billion.

Community members were in London to show their solidarity with the workers.

Video: Adam Atkinson reports: