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S.D. (AP) – The Minnesota-based Schwan Food Company is closing distribution centers in Oakes, N.D., and Faulkton, S.D., and building a 7,000-square-foot facility in the South Dakota city of Aberdeen.

Company spokesman Chuck Blomberg says the move is aimed at increasing efficiency. The Aberdeen facility is to be completed in the fall at a cost of more than $1 million. The 15 employees in Faulkton and the 12 in Oakes are being offered jobs in Aberdeen and at other sites within the company.

Faulkton Economic Development Corp. member Dwight Hossle tells the American News that the job losses will hurt the town of about 730 people.

Oakes Mayor Monte Zimmer says that community of about 2,000 people also will feel the impact of the job losses