Exterion, a manufacturing division of Magna International Inc.'s Decoma International, announced Wednesday it will shut down its operations in the Ontario towns of Aurora and Newmarket, putting 850 people out of work.

The operations will be consolidated into other Decoma facilities by June 2009.

"The difficult decision to close the facility came after a careful evaluation of the facility's financial status, future business and open capacity in other facilities," Exterion said.

"Those factors, combined with the difficult economic conditions facing the North American auto industry due to reduced domestic production and customer demands, have made the Exterion operations no longer viable.

The shutdown is the latest in a string of closures and cuts in Ontario's auto sector.

Industry Minister Tony Clement told the House of Commons during question period he was "saddened" by Magna's announcement and that the government would be there to provide support for the workers.

NDP MP Brian Masse, who represents the Ontario riding of Windsor-West, said the federal government has remained idle while the United States has already readied $25 billion to aid the ailing auto sector.

"They are fighting for the future of this industry, while this government does nothing," he said.

Clement replied that the government is working with stakeholders and the industry toward the long-term sustainability of the auto sector, including the parts industry.

"The fact of the matter is we want long-term solutions, and that's exactly what Barack Obama and Dalton McGuinty are saying," the minister said.