CHIPPEWA FALLS, WI -- A deal that would shift SGI's manufacturing plant and staff here to a key contract assembler continues to drag on.

SGI struck a deal last November to sell its plant to Jabil for $6.3 million in cash. The deal also called for 117 workers to become Jabil employees.

However, SGI's sales slipped below forecasts, which could scuttle the agreement. SGI employs more than 300 workers in Chippewa Falls, according to published reports. But the deal has not been completed, in part because of lower than expected sales by SGI.

Now, it appears SGI is reconsidering the sale of the plant.

“SGI has decided to reevaluate its outsourcing model with Jabil, given lower than anticipated volumes of company product sales,” said Cassio Conceicao, SGI chief operating officer told the Chippewa Herald.

“We are in the process of renegotiating with Jabil a mutually beneficial arrangement, which could result in the termination of the anticipated building sale to Jabil. However the building will remain SGI’s until further notice."