Company plans to explore other options globally.
Timken will explore other investment opportunities around the world, said Timken Steel Business President Salvatore Miraglia.
"Many parts of this company are growing and expanding around the world," said Miraglia in a prepared statement. "We are disappointed in this outcome because the contract was a necessary step before our commitment to invest $225 million in steel operations in Canton."
Steelworkers Local 1123 based in Canton voted 917-608 to reject the agreement, according to the union's website.
The existing contract remains in effect until Sept. 2013.
Timken offered workers a contract that included wage and benefit increases, a signing bonus for ratification and additional job security measures, the company said.