PIPESTONE (KMHL) – A major employer in Pipestone announced that it will be closing its local facility.

In a press release, J&B Group Inc says the decision to sell off its Pipestone facility will affect about 145 jobs a in the community as it plans to move production to its St. Michael headquarter facility.

The company says all of the associates will have opportunities in St. Michael and will be eligible for relocation assistance.

“This was a long and difficult decision and not a reflection of the quality of work done by our associates in Pipestone,” said J&B President Chuck Weum. “We are working with our Pipestone associates to ensure they are getting the resources they need during this transition and are providing enhanced benefits and severance packages to help during this time.”

Weum says the decision to sell the Pipestone facility is a result of a number of factors.

“A change in the product portfolio, the investment of $7.2 million in anticipation of new business that did not materialize and our desire to invest in infrastructure at the St. Michael facility,” said Weum. “By consolidating our operations, we gain efficiencies that will allow us to capitalize on growth opportunities while creating value in the marketplace.”

The company plans to end operations at its Pipestone facility by November 22.