Nortech Systems will shut down a production plant in Merrifield. The move is expected to cost the Maple Grove-based business about 60 jobs.
According to their statement, the closure will take place at the end of December, with Merrifield employees being offered positions at other Nortech locations.
Nortech has also entered into sale and leaseback agreements with Essjay Investment Company, LLC relating to Nortech’s manufacturing facilities in Bemidji and Mankato.
Nortech and Essjay are expected to close the agreements during the Company’s fiscal third quarter, subject to final documentation and other customary conditions.
“Given the challenging economic environment, we are pleased with the significant improvement in operating profitability for the second quarter, our sale and leaseback agreements with Essjay and the Company’s plans to drive PCB manufacturing productivity,” said Jay D. Miller, Chief Executive Officer and President.
“Our balance sheet continues to strengthen, and the sale leaseback and plant consolidation will provide significant liquidity to make further investments in the business. Our goal through these essential moves is to enhance Nortech’s ability to operate through the current COVID-19 pandemic and succeed long term.”
Nortech produces complex engineering and manufacturing of electromedical and electromechanical parts.