Nortech Systems closing plant near Brainerd

The Maple Grove-based company said it will offer its 60 plant workers jobs at other plants
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Nortech Systems is closing its production plant in the Brainerd area, affecting around 60 jobs. 

The Maple Grove-based company announced the closure of its Merrifield plant in its second quarter earnings report, which showed its quarterly sales were down 3 percent from last year's second quarter at $26.5 million.

The company, which engineers and manufactures electromedical and electromechanical parts, will also move PCB manufacturing from a facility in Monterrey, Mexico to its Brainerd plant. 

The Merrifield workers will be offered positions at other facilities, the company said. 

Nortech also said it has signed sale and lease-back agreements for two of its other facilities in an attempt to save money.

The 15-year agreements with Essjay Investment Company for its Bemidji and Mankato facilities should earn Nortech $5 million in its third quarter, which will go towards debt and providing liquidity, the company said. 

At the end of 2019, Nortech reported it had 697 full-time and 97 part-time employees in Bemidji, Blue Earth, Milaca, Merrifield and Mankato, Minnesota. The numbers also include employees in Monterrey, Mexico, and Suzhou, China. It had an annual revenue of $113.6 million, which is less than one percent more than it reported in 2015.

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