WORKERS at the DSI Holdings factory in Lavington have been told to prepare for the grim prospect of it closing in October next year.

Melbourne-based DSI chief executive Mike Turner and other senior managers recently visited the gearbox factory to give an update on the company’s position.

The Australian Manufacturing Workers Union is keeping close tabs on developments.

DSI’s Chinese owners, Geely Automotive, has a contract to supply gearboxes to SsangYong until October next year.

The plant’s workforce numbering less than 200 has been told there are no fresh contracts in place beyond then.

NSW union branch official Sean Morgan said the one ray of hope was that SsangYong, a South Korean car maker, can’t find a suitable replacement supplier and work was maintained at the Lavington factory.

Mr Morgan said DSI management was doing everything in its power in a tough marketplace, but conceded workers were nervous about their futures.

“The company has put proposals to China to keep the current workforce with a few plans of what they want to try and do,” he said.

“If they are approved they will keep the workers — if they don’t, they won’t.

“Past experience tells me we won’t hear anything 

from China for another four weeks.”

DSI Holdings management couldn’t be contacted.

The factory opened in 1971 when gearboxes were made for Nissan, Holden and Ford.

The factory employed 1250 people in 1982, making it by far the city’s biggest private employer and a linchpin of the Border economy.

It later was operated by BTR and successively by ION and Drivetrain Systems International, both of which failed owing millions to creditors.

In latter years, Ford Falcon gearboxes became the primary product, but Ford ended its association with the Lavington plant in 2011 and imported transmissions from Europe.

SsangYong signed up as a customer in 1997.

Its own financial woes cut on Lavington’s productions from time to time.