SHELBYVILLE, Ind. -- Meridian Automotive Systems is idling a central Indiana factory, putting 295 people out of work.

The company told city officials on Thursday that it was closing the Shelbyville plant for an indefinite period, eliminating 278 hourly and 17 salaried employees.

The announcement came less than month after Meridian announced a planned layoff of 198 people at the plant in stages over the summer.

The Allen Park, Mich.-based company had said then that the layoffs were necessary because it had lost a major customer, which it did not identify.

Meridian has made various parts for several auto companies, including General Motors.

"You've got to feel for them. It's happened to a lot of people," said Shelbyville resident Harold Oakley. "It hurts, because there's no place else to get a job right now."

Shelbyville City Councilman Jeff Sponsel is concerned about the ripple effect to the city's economy.

"It's not only the families that losing their jobs, it's the collection plate at church, the grocery store, the barber shop," Sponsel said. "The trickle-down effect ... is almost immeasurable."

Shelbyville Mayor Scott Furgeson said he hoped Meridian would keep the plant in its long-term plans and someday reopen it.