A local maker of injection-molded plastic parts has announced it will begin laying off employees as a result of a contract cancelation by its largest customer.
Grand Rapids Plastics filed a WARN notice with the Michigan Workforce Development Agency last week, saying that Fiat Chrysler Automobiles, or FCA, informed the company on Feb. 18 that it’s canceling all contracts with the company.
Grand Rapids Plastics says it “reached out to FCA seeking clarification on FCA’s intended actions, but FCA confirmed that all orders would cease immediately.”
As Grand Rapids Plastics’ main customer, the company said FCA’s decision will result in “permanent layoffs that were previously announced as indefinite and temporary in nature.”
The 85 layoffs will occur at the company’s Grand Rapids campus, which consists of four facilities located along Roger B. Chaffee Boulevard.
The company says the layoffs will occur in two waves, with the first wave occurring over the next two weeks and the second wave planned to take place on or around May 6.
Grand Rapids Plastics makes parts for various industries: automotive; home; sporting and recreation; construction; and electronics.