Following news of a new military order and a boost in demand, Daimler Trucks North America will not close its Portland, Ore., plant as previously announced
, according to published reports.

The facility houses about 650 employees, and the unions are currently in labor talks with the company, according to published reports.

The company had originally announced that the Swan Island plant would shutter in June 2010. The facility is responsible for building U.S. military vehicles and Western Star trucks.

At the beginning of September, Daimler received news that the U.S. Army Tank-automotive and Armaments Command would like 1,780 units of the M915A5 military line-haul tractors, as part of a new contract worth $377 million.

Daimler had planned to move its Western Star operations to a plant in Mexico, but that decision is now on hold.