Tyco Electronics says it will phase out production starting in May as the company shifts its operations to Mexico. It will close for good by August.
Spokesman Mike Ratcliff says company officials told employees about the plans on Friday. He says moving the plant to Mexico will help cut costs by eliminating overlapping operations.
Workers will get a severance package that includes one week of pay for every year of service.
Some part-time employees also work at the facility, but Ratcliff wasn't sure of how many.
Sterling has been hit with a number of plant shutdowns, including the 2001 closure of Northwestern Steel and Wire which cost the area more than a thousand jobs.
(Sterling is about 50 miles southwest of Rockford.)