Caterpillar officials say a plant in Canada where workers have been locked out over a contract stalemate, will now be permanently closed.  The plant is a subsidiary of CAT, called Progress Rail Services. 

A CAT statement says that the cost structure of the Electro-Motive plant was not sustainable and efforts to negotiate a labor agreement failed.  The plant employed about 450 people in London, Ontario.  Pay cuts of up to 50 percent were on the table. 

Union workers threatened to walkout after refusing the contract terms, but before that occurred,  a lockout was ordered January 2nd.  Sources indicate CAT possibly plans to move that Canadian operation to a facility in the U-S.