More than 50 workers at a factory near Ontario that makes winter clothing are to be laid off after its new Chinese owner decided to cut production.

Union leaders representing the staff at the former Borg Textile plant in Elmira, now owned by Shanghai-based Haixin Group, say they have no idea if the lay offs will be temporary or permanent.

Company chiefs say sales were hit hard by the economic fall out of last year's terrorist attacks on the US and this year's fall period is extremely critical to the firm.