Kent Precision Foods Group Inc. is laying off 62 employees at facilities in Foley and Sauk Rapids, Minn.
More than 60 jobs lost as food plants in Foley, Sauk Rapids close
Kent Precision Foods notified the state of Minnesota of the actions.
The Minnesota Department of Employment and Economic Development said Tuesday that the company notified the state last week about the permanent closing of facilities in those cities.
Fifty of the jobs being cut are in Foley, which is in the St. Cloud metro area.
City officials in Foley learned of Kent's shutdown plans from the letter that the company filed with DEED.
"We were notified today," said Sarah Brunn, city administrator of Foley, which has about 2,700 residents. "That's significant. It will have an impact on our community."
The layoffs are effective Nov. 30, the company said in a statement.
The Muscatine, Iowa-based company, the statement said, "has shifted away from co-manufacturing, predominantly due to the price sensitive nature of this channel of the market. Thus, the difficult decision has been made to close KPFG's Foley, MN, facility and the Sauk Rapids, MN, warehouse."
Kent Precision Foods acquired Foley-based PouchTec Industries in 2016. PouchTec produced food and liquid packaging for many large companies.
The company specializes in developing, blending and packaging dry food products for both consumers and foodservice businesses. Kent Precision Foods is a subsidiary of the privately held Kent Corp.
The company employs about 2,000 people in 20 states and seven countries, according to its website, with seven Kent Precision Foods locations, including Foley and Sauk Rapids.
The job cuts by Kent Precision Foods marks the third round of layoffs disclosed by the state since last Wednesday.
Last week DEED reported that WestRock Co. is laying off 70 employees in Fridley and Alumacraft Boat Co. is cutting 68 jobs in St. Peter.
Health care spending rose by 15%, driven by higher prices. Officials say solutions are needed to prevent Minnesotans from being priced out or delaying care they need.