ADRIAN, Mich. (AP) – A Michigan auto supplier says it plans to lay off nearly 200 people from its Adrian factory, despite a more than $23 million expansion plan just six months ago.

MLive reports that Inteva Products plans the layoffs for at least six months starting in May.

Human Resources manager Ken Smith says the layoffs are due to “the cancellation of our agreement with one of our largest customers and the loss of business associated with the cancellation of that agreement.”

New business was cited as the reason Inteva received a nearly $1.3 million incentive from the Michigan Strategic Fund last August.

At the time, the company planned to invest $23.3 million in new equipment. The reason for the expansion was to build components for the Chevy Silverado and GMC Sierra.

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