J&B Group, Inc. announced plans to sell its Pipestone, Minn., manufacturing plant in order to consolidate operations by moving the Pipestone production to its St. Michael, Minn., headquarters facility, effective Nov. 22.
J&B Group has owned the Pipestone meat processing plant for the past 12 years, and employs approximately 145 people at that location.
The Pipestone plant produces fresh and frozen ground beef and steaks, which will now be handled at the St. Michael facility.
“The decision to sell the Pipestone facility is a result of 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,” says Chuck Weum, president. “By consolidating our operations, we gain efficiencies that will allow us to capitalize on growth opportunities while creating value in the marketplace.”
“This was a long and difficult decision, and not a reflection of the quality of work done by our associates in Pipestone,” adds Weum.