Contech to lay off 59 at Kosciusko County plant

Greater Fort Wayne Business Weekly

Contech LLC will lay off 59 employees at the company's plant in Pierceton after failing to find a buyer for all or portions of its casting business as it attempts to reorganize through Chapter 11 bankruptcy.

In a Worker Adjustment and Retraining and Notification Act letter sent to the Indiana Department of Workforce Development, Contech stated the layoffs will occur between July 1 and July 8. The Portage, Mich.-based company will not, however, close the Pierceton plant located at 5 Arnolt Drive.

Contech makes lightweight die-cast components and steel products for the automotive and commercial truck industries. It filed for Chapter 11 Jan. 30.

"In spite of our attempts to retain key business during this downturn, because of the financial uncertainty facing Contech, certain key customers recently have announced they are going to source their business elsewhere to protect their interest," the company stated in the June 2 WARN letter. "Recent attempts to sell all or portions of the casting business to raise sufficient capital to exit Chapter 11 bankruptcy have not yet led to results."

In its WARN letter, Contech stated three of the 59 employees were laid off earlier this year.