In a statement released this afternoon, DSI International said the board of DSI Holdings Pty Limited "has decided to cease its automotive manufacturing operations in Australia effective on or around October 31, 2014 depending on conclusion of current supply contracts."

DSI Holdings, once one of the Border's major employers in its former guises as Borg Warner, Ion and BTR, has seen a steady decline in recent years.

The Kaitlers Road site presently employs 142 permanent workers. 

The plant's Chinese owners, Geely Automotive, had a contract to supply gearboxes to SsangYong until the end of October.

"This decision is taken with deep regret but unfortunately it is no longer viable for DSIH to manufacture in Australia as has also been evidenced by the recent announcements of Holden and Toyota that they will cease manufacturing in Australia," the statement said.

"DSIH has taken some time to consider all other alternatives and has not been able to find a workable solution.   

"DSIH recognises the impact of this decision on our employees and the local community of Albury-Wodonga and as such we intend to work with all employees and the union to ensure that all of our employees are supported throughout this transition process.  

"DSIH will ensure that all redundancy and other entitlements are paid in accordance with the applicable enterprise agreement."  

DSI is expected to keep a research and development presence at the existing engineering site at Springvale.