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.