Dufferin County is expected to benefit from Honda Canada’s hiring of at least 400 new employees at its two Alliston manufacturing plants as the auto industry appears to be rebounding from a slump that began early last year.

The company announced earlier this week its plans to add a second shift at one of the Alliston plants this summer, and said it would hire new workers along with recalling some who had been there under contract.

The Honda announcement will not help Johnson Controls in Orangeville, as that plant is to close permanently on Nov. 19, according to a source, although some employees might be able to find work with Honda.

Shelburne had been among the losers when the auto industry sailed into the doldrums early last year. First, an unknown number of contracted Honda workers from the town and area did not have their contracts renewed, and some others accepted buyouts from their full-time jobs.

And then Setex Canada, whose only customer was Honda, ceased local operations and moved to Milton, resulting in a loss of about 250 jobs in Shelburne. The Setex plant (formerly Johnson Controls) is in the process of being sold to a water-bottling company for use as a warehouse.

Most, but not all, of the former Setex employees have been re-employed. It wasn’t immediately known whether the re-employed workers would be paid at the same levels as before but those who moved temporarily to the Milton plant did so at reduced wages.

Shelburne Mayor Ed Crewson didn’t have the overall employment numbers available to him for an interview Wednesday, but said he hopes Honda will be recalling personnel from the town.

“Hopefully some of the contractors (will be rehired). Certainly, several people were young guys (who might still be looking for employment)," he said.

In Orangeville, Mayor Rob Adams said he was “very pleased” with the Honda announcement. “Many from the Orangeville area work there. It's a great opportunity within a reasonable commuting distance, and a good fit for (some skilled workers seeking employment.”

Mayor Adams said he considers Honda to be “a regional employer,” and any job creation is good for the local economy.

Setex had been supplying seats for several Honda models, including the Civic and Acura.

Similarly, the Orangeville Johnson Controls plant has been supplying seats for Chrysler models. It announced in 2007 that its Chrysler contract was not being renewed and the plant would have to close in 2010 unless other contracts could be obtained.

At Ottawa, Dufferin- Caledon MP David Tilson praised Honda for its announcement.

During Question Period Tuesday, he asked Industry Minister Tony Clement to “please inform us of the wonderful news that we’ve heard today out of Alliston, Ontario.”

“Mr. Speaker, indeed I am pleased to rise in the House today and announce that Honda Canada is expanding production at its plant in Alliston, Ontario, creating more than 400 new jobs,” the minister replied.

“ This, of course, is testament to Honda’s strong commitment to Canada and confirms that our government is on the right track. While the opposition ponders how to raise taxes on businesses like Honda, this government has successfully created a low-tax environment that is creating jobs in this country.”

Mr. Tilson said later the Honda announcement “is great news for Dufferin- Caledon.

“Many folks in Dufferin-Caledon work at the Honda plant and the addition of 400 new jobs is going to be a big boost for our local economy,” he said. “The economic spinoff for local businesses that will result from this announcement couldn’t come at a better time.”