The closure move is due to the current economic recession, according to company spokeswoman Jeanine Holquist. The production of healthcare products will be consolidated in the company’s Tijuana, Mexico, plant.

The plant in Waterloo, Canada was purchased by the company in 2006, making healthcare furniture under the Nurture by Steelcase trademark. It has been closed as part of a major global rationalization by the company to cut costs and headcount.

The company will keep a sales office and its manufacturing and office facility in Canada, employing around 330 workers.