Applied Materials has decided to close its Libby facility on Oct. 1 after 15 years of operation.

All 17 employees in Libby have been offered similar positions with Applied Materials in Kalispell, as well as relocation assistance packages.

“It was not an easy decision, but ultimately we feel that combining the staff in one location is best for employees and the company,” said Kevin Winston, managing director for corporate communications for Applied Materials.

The Libby facility served as a “packaging, plating and cleans” manufacturing location for processing equipment for the semiconductor industry. It served as a subassembly plant that output the final assembly to the Kalispell plant on West Reserve Drive.

“We’re essentially consolidating the manufacturing and assembly function into one location,” Winston said.

The Kalispell manufacturing site currently has 550 employees, Winston said.

Employees who choose not to transfer to Kalispell will be offered severance benefits, according to Winston. The Libby staffers will be paid for 60 days after the site closes in October. During that time, the employees can decide whether they want to relocate.

“It was a tough decision. They’re valued employees and we’re trying to do this with the most amount of respect to people we want to keep with our company. But I know it’s a distance from Libby to Kalispell, and I just hope they choose to stay with the company,” Winston said.