Some ND Imation jobs going to Mexico
WAHPETON, N.D. --Nearly half of the jobs at the Imation Corp. plant here that is being closed will end up in Mexico, Sen. Byron Dorgan said.
Dorgan, D-N.D., said Friday that Frank Russomanno, president and chief executive of the Oakdale, Minn.-based company, told him the production of 168 of the plant's 390 workers would be shifted to Juarez, Mexico, where labor costs are lower.
Imation spokesman Brad Allen did not immediately return a telephone call Friday seeking comment.
Imation announced this week that it plans to close the Wahpeton plant by mid-2009 as part of a companywide restructuring.
Imation makes magnetic data storage products. The company says the floppy diskettes it makes in Wahpeton are becoming obsolete and other projects for the Wahpeton plant are not feasible.
"They say there's not a future in floppy disks. I don't disagree with that," Dorgan said. "But the fact is, to my knowledge, 45 of the 390 people are involved in that down in Wahpeton. The rest of them are involved in other kinds of data storage, and new technology."
Dorgan has asked Imation to reconsider its decision to close the plant. He said the company has received millions of dollars in local, state and federal grants and guaranteed loans to expand the facility, but instead is shutting it down.
"I still don't understand what kind of lack of planning results in that type of business decision U-turn," he said.
Dorgan said Russomanno told him Imation would not reconsider the decision, "but intends to work with North Dakotans to try to attract another company to that plant."
Imation and city officials said the company annually spends $25.1 million in payroll and benefits at the Wahpeton plant, pays $275,000 in taxes and buys $4.7 million in goods and services locally.
"It's terrible to lose the plant. It's so important to our community," said Wanda Seliski, general manager of two hotels across the street from Imation.
The public school systems in Wahpeton and neighboring Breckenridge, Minn., together have about 150 students with one or both parents working at Imation, officials said.
"We were already dealing with budget cuts," said Breckenridge Superintendent David Pace. "We didn't need this happening with Imation."
