Auto supplier Plastech files Chapter 11

DETROIT, Feb. 2 (UPI) -- Plastech officials say the auto industry supplier has filed for Chapter 11 bankruptcy protection in Detroit.

Plastech, the industry's largest minority-owned supplier, announced the filing Friday in an e-mail from company founder and CEO Julie Brown, Crain's Detroit Business reported.

Plastech, and other plastic parts providers in North America, have been hit with higher costs for raw materials and lower customer demand, The Detroit News said, noting at least two of Plastech's competitors have declared bankruptcy in the last couple of years.

Chrysler LLC terminated its contracts with Plastech Friday, opting to contract with Plastech rivals to make interior-trim parts for Chrysler vehicles, including the popular 300 sedan.

The Chrysler contract was worth up to $200 million a year to Plastech, which posted sales last year of $1.4 billion, the Detroit News reported.