Melton MP Don Nardella last week expressed concerns for the future of the more than 100 workers at the Melton factory, which produces plastic parts for the interior and exterior of cars made by Toyota, Holden and Ford.

But MHG Plastics chief executive Ellison Mouncey told the Weekly Toyota's decision would not have any flow-on effect.

"Toyota job cuts were an adjustment of excess labour which they have been carrying since last year and as such will not have an impact on jobs at MHG Plastics."

Mr Mouncey said MHG had recently increased its level of business slightly.

"In our case, we didn't have to do that [reduce staff] because we won other business with other customers."

Australian Manufacturing Workers Union state secretary Leigh Diehm was pleased MHG employees would not be affected.

But he said the news was not so good for Toyota employees. Toyota and the union are to meet on Thursday.

"We hope to work co-operatively with them for the best results for our members ... things like assisting with counselling as a result of the announcement. Some of our members have worked at Toyota for up to 35 years, so it's not as easy a transition," Mr Diehm said.