The Schwan Food Company has announced plans to close distribution depot centers in Faulkton and Oakes, N.D. Schwan’s will replace these plants with a new facility to be located in Aberdeen.
According to Chuck Blomberg, Communication Manager for Schwan’s, there are currently 15 employees at the depot in Faulkton. Schwan’s established the depot in 1970. Blomberg said they hope to retain all of their employees.
“We loved operating from both towns,” said Blomberg, “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.”
The new plant construction is expected to begin this summer and be completed by October of this year.
The new 7,000-square-foot facility will be located at the corner of Enterprise Street and Capital Avenue NE in the Aberdeen Industrial Park. The building will support 20 sales and warehouse employees who serve customers in north central South Dakota and south central North Dakota. The new structure represents a more than $1 million investment for Schwan’s. The building will feature a new freezer and equipment that will make the facility energy efficient.
Along with the loss of jobs in Faulkton, many area businesses currently supply services to Schwan’s and will feel the economic impact.