Contech Steel Products of Albemarle, N.C., a producer of forged automotive parts, announced it will close this August. The company cited “extremely difficult financial challenges” as its reason to reorganize in bankruptcy. As part of bankruptcy proceedings, the company anticipates that its “entire facility will permanently shut down in the near future.” The company announced that all employees will be laid off and all positions at the facility will be eliminated, resulting in the loss of about 100 jobs.
Contech executives tried to seek alternatives to bankruptcy, such as sale of the company to Chrysler LLC, but all negotiations failed. Instead, Chrysler exercised its contractual right to operate certain functions at the facility for a short period.