TORONTO, Ont. – Mining and construction equipment giant Caterpillar has announced it will close its tunnel-boring facility near Pearson Airport.

Production at the facility is set to tone down and finally cease by mid-2014.

Caterpillar bought the facility five years ago, and nearly 330 people are expected to lose their jobs when the plant closes.

A spokeswoman for the company says it does not make sense for them to stay in the tunnelling business because of financial underperformance.

Tunnel-boring machines are currently being used beneath Eglinton Avenue for the new LRT line, as well as tunnelling work being done in Vaughan for the Spadina subway.