[Kokkei Mizu]

The opening of a new locomotive plant in Indiana likely spells the end of London’s locomotive plant — and the roughly 1,000 jobs there — says a national expert in business competition.

But workers at London’s Electro-Motive Diesel on Oxford St. tried to remain positive Monday as talk of the new plant spread through the facility.

“This is very bad news for the London plant. It means the beginning of the end,” said Joseph D’Cruz, professor of strategic management at the University of Toronto’s Rotman School of Management.

Listed in Canada’s Who’s Who as an expert in national competitiveness, D’Cruz said the two plants, owned by the same company, will compete for contracts.

“London is a relatively older plant which is now out of date. It will have to compete with a brand new plant in Indiana.”

For decades, General Motors milked money from the London plant without putting any back into the operations, D’Cruz said.

Though GM sold the plant a few years ago, the damage has been done, he said.

Costs will be lower in Indiana, and governments in the U.S. are committed to keeping jobs within the country’s borders, he added.

Indiana has promised millions of in incentives, D’Cruz said.

Heavy equipment maker Caterpillar Inc., which bought Electro-Motive Diesel in late summer, announced Friday its Progress Rail Services unit will open a railroad locomotive assembly plant in Muncie, Ind. It’s expected to start production by the end of 2011 and employ up to 650 workers by 2012.

Meanwhile, the contract between the union for about 600 London workers and the company expires at the end of 2011.

Workers coming off shift Monday at the Oxford St. plant had mixed feelings about news of the Indiana plant.

“It’s big business and big politics. There is nothing we can do about what happens,” said Ron Wilkie, a 22-year veteran.

His union representatives told him the Indiana plant is being built to help Caterpillar compete with General Electric’s locomotive division, and won’t necessarily cost jobs in London.

But workers were uncertain. “There is a lot of worry about it,” said another worker, who asked not to be named. “We won’t know anything until it happens.”

Calls to Caterpillar officials Monday were not answered.

The union representing London workers, Canadian Auto Workers Local 27, is seeking a meeting with Caterpillar to discuss the Oxford St. plant’s future.