CNI Inc. announced Friday that its Duluth plant will close in January, putting 70 people out of work.

The manufacturer of interior automotive trim -- including seats, headrests and armrests -- began operations in Duluth in April 2005.

Its facility, located at 4313 Haines Road, produces parts for auto manufacturers including Chrysler, General Motors, Nissan and Hyundai, according to plant manager Cy Elliott.

Elliott said a slowdown in the auto industry has reduced demand for product.

He said work previously performed in Duluth will be farmed out to other CNI plants, but he said that exactly where remains to be determined.

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CNI, a privately held company headquartered in Madison Heights, Mich., also has operations in Acuna, Mexico; Del Rio, Texas; and Owosso and Cadillac, Mich.

"Part of the problem was that Duluth is so far off the beaten path," Elliott said. "Our transportation costs were too high."

Elliott said CNI had a temporary layoff last year between Christmas and New Year's Day. This year, however, many workers in Duluth won't be coming back at all.

While the holiday timing of the closure announcement may be tough, Elliott said economics dictated the move.