The Schwan Food Company plans to build a new 7,000-square-foot distribution center in Aberdeen, S.D. and close two other facilities in Faulkton, S.D., and Oakes, N.D., Aberdeen News reports. The closures will affect nearly 30 workers, who are being offered positions at other company locations.
"We certainly loved operating from both towns; however, we had to make the right decision for our business as we looked to upgrade our facilities, operate more efficiently and better serve our customers in the area," company spokesman Chuck Blomberg told the newspaper. "We are committed to growing our business in the area, and this new building will better position us to serve our customers and grow. As we grow, the new facility can easily be expanded to meet our needs."
Construction on the new $1 million sales and distribution center is expected to begin next month and is set to be completed this fall.
Schwan, based in Marshall, Minn., sells and distributes more than 350 products, including ice cream, frozen pizza, meats, and desserts.