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Nortech Systems closing plant near Brainerd

The Maple Grove-based company said it will offer its 60 plant workers jobs at other plants

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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