Members of Unite at the GKN Automotive factory in Birmingham, which produces drivelines for the UK automotive sector, were due to take industrial action next week.
Unite said that following a meeting with the company, it was agreed there would be a moratorium on work and machinery being taken out of the factory.
A meeting of stakeholders will be held to seek a way to keep the factory open, so no industrial action will start before October 18, said the union.
Unite national officer Des Quinn said: "In the spirit of goodwill, the planned strike action has been suspended to allow for talks about the future of the factory with key stakeholders to take place.
"It is hoped that all sides can use this window of opportunity to secure a long-term future for the factory."