CHATHAM, Ont. – Any speculation that Navistar International might hold on to its idled Chatham, Ont. truck manufacturing plant has been put to rest.

The company announced that will officially close the facility, dashing any hopes for its 1,000-plus laid off workers that the truck and engine maker could resurrect the plant when the economy fully recovers.

No timeline was given for when the plant would be shuttered permanently.

The plant -- which has been around for about 90 years until it was idled two years ago -- was supposed to close in 2004, but various government grants and concessions from the CAW allowed it to remain operational until 2009.

Chatham production has already been absorbed by other Navistar truck plants.

"From a capacity standpoint, we are well positioned to meet demand expected in the last half of 2011 and further increases in 2012," said Dee Kapur, president, Navistar Truck Group. "We’re seeing tremendous benefit from our flexible manufacturing strategy, which allows us to build more trucks -- and a wider variety of them -- at various plants."

The company reiterated that the plant closed because it could not reach a collective bargaining agreement with the CAW.

But CAW president Ken Lewenza said in a press release that it could not get Navistar back to the bargaining table to try and save the facility.

Lewenza said the closure is "devastating" to the laid off workers and the southwestern Ontario community.

He said that the union will schedule meetings with the company to negotiate a closure agreement on behalf of the laid-off members.

Aaron Neaves, president of Local 127, said he's disappointed with the timing of the announcement.

"We're even on the cusp of a market turnaround for big trucks in North America, with sales up by over a third from last year. Ironically, it's at the same time that our factory is closing. We should be adding jobs now, not taking them away. It simply doesn't add up."

Meanwhile, Navistar also announced plans to significantly scale back operations at its Monaco headquarters and motor coach manufacturing plant in Coburg, Ore.

As well, it plans to close its Workhorse Custom Chassis subsidiary in Union City, Ind.

"We understand the impact these decisions have on our employees,” Kapur said. “We will treat people with respect and provide support to help them with their transitions."

The announcement comes a few years after Daimler announced the closure of its Sterling plant in St. Thomas and just a month before Ford will shut down its nearly St. Thomas assembly plant.