MISHAWAKA, Ind. (AP) — Pharmaceutical giant Bayer plans to close its northern Indiana customer logistics center, costing 200 workers their jobs.

Bayer announced that it will close down its center in Mishawaka, just east of South Bend, over the next 18 months. The company says in a statement the closure will help it “reduce complexity, improve efficiency and enhance customer service.”

Mishawaka Mayor Dave Wood says Bayer’s announcement was “a little bit of a shock to us” because he’s been working with the company on expanding in the area. He says the closure will have a big local impact.

Bayer purchased Elkhart-based Miles Laboratories in 1978, but has been slowly moving its operations out of the area.

Bayer spokesman Chris Loder says all employees affected by the closure will receive severance benefits.

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