St. Paul, Minnesota – Minnesota Paving and Materials, a leading construction materials and paving company, has announced plans to close 14 locations and lay off 297 employees across central and southern Minnesota, according to the Minnesota Department of Employment and Economic Development (DEED).
The affected locations include Mankato, New Ulm, Kasota, Owatonna, Comfrey, Becker, Rogers, Rosemount, Waite Park, St. Cloud, and Lakeland. The company’s final day of operations at these sites is December 19, 2025.
Minnesota Paving and Materials traces its roots back to 1861, evolving from four local companies into a major provider of asphalt, aggregate, and paving services throughout the state. Its services have historically supported both residential and commercial construction projects, as well as municipal infrastructure improvements.
“We recognize the impact this closure has on our employees, their families, and the communities we’ve served for decades,” said a company spokesperson. “This decision was not made lightly, and we are committed to assisting affected staff through this transition.”
DEED officials noted that the layoffs will affect nearly 300 skilled workers, including equipment operators, plant staff, and administrative personnel. In addition to supporting displaced employees, DEED will provide resources for unemployment benefits, job placement, and retraining opportunities.
The closures reflect ongoing challenges in the construction and materials supply sector, including rising operational costs, fluctuations in construction demand, and market consolidation pressures. Industry analysts note that similar regional companies have been scaling back operations or merging to maintain profitability in the current economic climate.
“It’s always difficult to see long-standing companies reduce operations,” said a DEED official. “We are working closely with the company and local workforce agencies to help employees find new opportunities and access resources for retraining.”
Minnesota Paving and Materials remains committed to continuing operations at other sites and maintaining service to ongoing infrastructure projects statewide, even as the affected locations wind down.
The company encourages employees impacted by the closures to reach out for support and guidance in navigating the transition over the next two months.
Originally reported by KEYC News Now Staff in KEYC.