Print this story |
E-mail story |
This story has 8 comments Add your own |
iPod friendly | Bookmark this
What is this?
Wahpeton plant closing to have impact in Fergus Falls
Published 12:00 p.m., May 8, 2007
Imation’s plans to first downsize, and then close, its Wahpeton manufacturing plant will mean jobs lost in the Fergus Falls area. An estimated 35 of Imation’s 390 Wahpeton employees commute to the plant from Fergus Falls.
“It points out the fact in economic development that you can never let your guard down,” Fergus Falls Economic Improvement Commission Director Harold Stanislawski said. “You have to be as continually dynamic as you can to provide jobs in as many sectors as you can. No matter how good things are going, it’s not good enough. We have to keep growing. If you don’t, this kind of thing can occur.”
Imation Corp., will shutter its Wahpeton plant by mid-2009. Downsizing will begin sooner.
“Within six months, we will exit ancillary manufacturing operations,” Brad Allen, Imation’s vice president of corporate communication said.
Employees were notified at 3 p.m. Monday.
“It’s very somber,” Marilee Tischer, Imation’s human resources manager, said, describing the plant’s atmosphere following the announcement. “It’s a shock and people are very much surprised.”
“It’s never good,” Jim Oliver, director of the Wahpeton-Breckenridge Chamber of Commerce, said. “Our hope is some other company will come in and start something new.”
Imation started in Wahpeton as 3M in 1977, becoming Imation on July 1,1996. Wahpeton is the site of diskette manufacturing, tape converting operations, limited-volume CD-RW optical disc production, machining and plastic part molding. But the need for these products is reaching an end, Imation officials said.
“Diskettes have been a significant portion of our product portfolio for more than two decades,” said Dr. Subodh Kulkarni, Imation’s vice president, research, development, and manufacturing. “But they are now only a small, rapidly declining part of the market and they are nearing their end of life. The decision to exit the Wahpeton plant and to consolidate and outsource converting operations from all of our plants is difficult but necessary as we move forward to optimize our manufacturing strategy.”
Imation’s closing also will have a direct impact on Fergus Falls-based Otter Tail Power Company. The Wahpeton manufacturer is one of Otter Tail’s largest industrial customers.
The loss of Imation will adversely affect Otter Tail’s yearly revenues, company officials said. The electric supplier also has a big investment in substations and other electrical equipment needed to serve Imation at Wahpeton.
Imation will provide separation packages and outplacement support services to impacted employees.
Shock seems to be the prevailing reaction to the news.
Gordy Hall, 53, Fergus Falls, worked at the Wahpeton plant from 1990 until taking a severance package Dec. 31, 2004. Prior to his departure, he served as tooling supervisor in the Imation machine shop.
“I’m surprised by the news to close the plant, and disappointed that some of the Imation manufacturing will be going elsewhere,” he said. “They’ve been in a reduction mode the past few years and I know they’ve offered severance packages each year since I left.”
Like other Fergus Falls residents who work at Imation, Hall commuted back and forth daily. He now owns and operates his own business, Outback Landscaping.
“When I worked at Imation a lot of people from Fergus Falls worked in the tooling section,” he said. “At any given time I knew between 25 and 30 or so people who commuted from Fergus on a daily basis.”
WOULD YOU LIKE TO SHARE THIS STORY?
Comments
The Daily Journal is happy to host community conversations about news and life in Fergus Falls and the surrounding area. As hosts, we expect guests will show respect for each other. That means we don't threaten or defame each other, and we keep conversations free of personal attacks. Those who persist with racist, defamatory or abusive postings risk losing the privilege to post. To post a comment you will need to register. Or, if you're already registered but have not included your true, verifiable identity with your registration, you will need to update your account to include your identity. Effective Dec. 1, 2009, all posts appear with the commenter's true identity, which must be verified by site staff. Those who registered prior to Dec. 1, 2009, should be aware that once you update your information with your true identity, all prior posts under your user name will also indicate your true identity. If you do not wish to link yourself to prior comments, you should register again with a different user name.Posted by 1125thmp (anonymous) on May 8, 2007 at 1:51 p.m. (Suggest removal)
Well as most things do in this current 'new frontier' of globalization this isnt a surprise. Why on earth would imation keep its plant in Wahpeton and pay its workers say $10.00 and hour when it can move to China and pay someone $10.00 a month. This is the absolute concrete fact of globalization. The ongoing abandonment of the workers who have contributed so much, and made companies what they are today. These very same companies then follow the tried and true method of 'well there doing it, so we have to as well. Who would have thought economics was so simple. Or at least its these generalization of terms that are constantly broadcast to the American ear. Until a canditate, be it local, regional or national stands up to support the employees and not the bottom line of campaign contributions, we shall always be a poor second on the list of things to do. I would think that soon perhaps that the long rally cry of free enterprise being the salvation of all that is scripture in this nation will be turned on its head and shown to be the corrupt accumulation for the few at the expanse of the many. Where is Ida Tarbell when we need her.
Posted by GStumbo (anonymous) on May 8, 2007 at 2:24 p.m. (Suggest removal)
First, Imation is producing a product in Wahpeton that, frankly, is a dying product. The floppy disk will very quickly become the 8-track tape of data storage. Would it be wise to defy the "new frontier" and continue having a workforce produce an obsolete product with no market? When is the last time you used a floppy disk?
Globalization has the potential to improve the quality of life for people around the world. I think we often get caught up in comparing other country's quality of life with our own and try to place our dollar-value-system on their society. To do that is off-base. For reference, read Friedman's "The World is Flat", if you haven't already. Note especially how positive the flattening of the world can be.
At least Imation/3M gave their employees a notice and a pretty decent severance.
To rely on elected officials to effect change is naive, if not suicidal, and, frankly, a Socialist state. Is that what we need? We are living in a creative age, where it will be creative thinkers and doers making the difference, and creating change and progress.
Perhaps the 30-40 Fergus residents working at Imation should invest their severance in forming a new company, in Fergus Falls.
I would be glad to help facilitate this and see if it is feasible!
Greg Stumbo
Fergus Falls
gwstumbo@hotmail.com
Posted by 1125thmp (anonymous) on May 8, 2007 at 7:47 p.m. (Suggest removal)
Thomas Friedman, if ever an individual lived who in 500 plus pages could so boil down the success of world globaliztion by listing off his constant exposure to corprate brand names being advertised all over the place while he travels the world screaming all is fair and balanced by this example, that individual I'm unaware off. Now while I could continue on with more of Friedmans equally wonderful speeches calling anyone who disagrees with the coming new world order, "These anti-W.T.O. protesters -- who are a Noah's ark of flat-earth advocates, protectionist trade unions and yuppies looking for their 1960's fix", I won't. this comment section would I believe not have the space..
I'm not against allowing the world to change, as you point out, it is a creative age, something to be looked forward to, but not at the expense of taking away from one group simple to give to another and defending it with some notion that becuase we have something we are at fault, this sir I do not stand by. Figures and statistics would prove me out on this point, the world is indeed getting richer, just not with many gaining only the few.
http://www.art-us.org/
http://faculty.maxwell.syr.edu/merupert/...
Globalization and International Political Economy: The Politics of Alternative Futures
by Mark Rupert and M. Scott Solomon. (This book provides a much better relflection on all the aspects of the current problems and benefits of globalization.)
Do not rely on elected officials! So the system in place as your see it should hold no relevance in our society? Hmmm elected officals who serve only after having been elected, but having no purpose, seems to me that is almost the definition of Communism?
These previous comments mean nothing. Seems it is what is done today in response to individuals who who do not share the same view point, we will attack and condemn eachs point of view, getting nothing done, and reinforcing our perspective ideas to the point of allowing no flexibility. I'm confident that with the help of government, the individual citizen and even our two or a thousand more peoples who share our concerns on what is to become of this small world will in the end be the only solution.
Posted by GStumbo (anonymous) on May 8, 2007 at 8:45 p.m. (Suggest removal)
Thanks, 1125thmp,
Your views are concise and well documented and I am not trying to condemn your views.
With props to Jim Wallis, it is more the direction of thought and discussion that needs to change in our society because politicians (elected) are, pretty much, wet-fingered and will go which ever way the wind blows. Simply exchanging one wet-fingered politician with another without attempting to change the wind isn't an effective method of change.
How do we, as a society encourage creativity and risk? How do employee unions inspire creativity? Granted, unions have a place. I just question whether it is in a highly competitive, evolving, areas where Imation, et al are forerunners. We all applaud when an employer comes along and hires 400 employees but are true strength needs to hold when the inevitable happens. The large employer model looks nice on paper and when it covers umpteen acres, but is there a case EVER where it has been sustainable?
Posted by Jinx_walker (Jeremy Jenkins) on May 9, 2007 at 9:40 a.m. (Suggest removal)
WELL I MUST DISAGREE WITH POEPLE ON THIS. THIS IS NOT A SUBJECT OF WORLD GLOBALIZATION THAT THEY ARE CLAIMING. IMATION IS NOT MOVING TO CHINA BECAUSE OF LOWER WAGES. THAT IS TRUELY FALSE AND NOT RIGHT. THE PEOPLE MAKING THAT CLAIM ARE JUST UPSET AND SCARED.
YES I AGREE THIS IS A POTENTIAL DISASTER FOR THE WHOLE REGIONAL AREA. MANY COMMUNITIES WILL BE AFFECTED BY THIS.
IT IS TRUELY A SAD DAY.
BUT THE REASON THEY ARE CLOSING IS FLAT OUT THEY ARE IN A PASSING MANUFACTURING IDEA. FLOPPY DISKS ARE BECOMING OBSOLITE. VERY SOON CDRW'S WILL BE OBSOLITE.
HOPEFULLY INSTEAD OF CRYING ABOUT WHAT IS HAPPENING THE SURROUNDING COMMUNITIES WILL COME TOGETHER AND GET TOGETHER AND MAKE SOME TYPE OF COALITION TO HELP BRING SOME JOBS TO THE AREA.
Posted by 1125thmp (anonymous) on May 9, 2007 at 6:22 p.m. (Suggest removal)
GStumbo, I couldn’t have said it better, I do agree with you. I perhaps more than anything what I was hoping to say about business and government is that when its operations or procedures are not transparent, strange things happen.
That something will need to be done in terms of government job zones, incentives, business and chamber of commerce participation to help those employed there and a world class production facility don't go to waste. But from wordings given about the success and competitive ability of the workforce available at Imation indicated by just a few items I have found on the internet, I doubt the claim of being unable to continue with operations simply because one product has become obsolete.
http://www.industryweek.com/research/bes...
“Key Tronic offers its customers worldwide procurement, distribution and logistics. In recent periods, the Company has continued to expand the core capabilities of its facilities in both Mexico and China. Key Tronic also operates facilities in Washington State and Texas. This combination of facilities enables the Company to offer exceptional service levels and remain very cost competitive, and give its customers tremendous logistical and material procurement flexibility."
http://www.keytronic.com/home/manufactur...
This above is the service capability of the company that will be assuming the production of all other services not representing just only Wahpeton’s disk production.
http://ir.imation.com/phoenix.zhtml?c=73...
"Final converting and assembly of the magnetic tapes will be
Transitioned to an outside company. These finishing operations include the
Winding of coated magnetic tape into cartridges, final inspection and
packaging of the finished tape product. A carefully managed transition plan
will be implemented to ensure a smooth transfer of these operations and no
disruption of supply to Imation customers.
The Company also announced plans to close its Wahpeton, N.D. plant by
mid-2009. It is currently the site of diskette manufacturing, tape
converting operations, limited-volume CD-RW optical disc production,
machining and plastic part molding."
So unless I'm reading everything incorrectly and from several other sites which I believe discuss the same thing, its pretty much spelled out in Imations own restructuring proposal that the operations at Wahpeton will be phased out along with another plant and turned over to Keytronic, who as the section above lists manufactures the same products overseas. These closings have more to do with an Imation restructuring to increase revenue by eliminating manufacturing jobs, and outsourcing most production and concentrating on the engineering areas.
"Approximately 675 positions out of a current worldwide total of 2,070 will be eliminated by mid-2009, the vast majority of which will be in manufacturing operations."
Posted by GStumbo (anonymous) on May 9, 2007 at 9:31 p.m. (Suggest removal)
As a publicly held company, 3M is beholden (?) to the stockholders. Unfortunately, too much pressure is placed on the heads of the directors to report quarterly earnings, so much so that they are willing to sacrifice thousands of employees to report good news (or, hire crooked accountants to pretty the numbers). We live in a time when we are too focused on short term gains and don't realize long term benefits or total costs. 3M had a shareholder meeting this week and, basically, said as much, in that by eliminating and outsourcing they had pretty decent earnings. What these companies are having too come to terms with is that they've grown so large, and want to consume so much more, that they can't even see their own feet.
Posted by 1125thmp (anonymous) on May 11, 2007 at 5:21 p.m. (Suggest removal)
I just read this in the Fargo Journal, its also on its frontpage. What a shame, your description was dead on GStumbo.
Some Wahpeton Imation jobs going to Mexico
BISMARCK, N.D. (AP) - Much of the production work done by employees at the Imation Corp. plant in Wahpeton will be shifted to Mexico, a move Sen. Byron Dorgan calls "more evidence that the global economy is working in a way that hurts American workers."
http://www.in-forum.com/articles/index.c...
The articles one piece of good news seems to be Imations decision to at least take the road of least destruction in giving the plant workers and the community time to hopefully come up with a solution. Perhaps I'm nieve, but it always seems to be that employeers find the one most hateful part of actual doing business is the problem that they have to pay there workers. This is a brave new world, for whom I know not. I'll step away from this issue for now, I'm pretty heated about it. I would prefer to find that rational decision based on information to provide me and to those who read what I post an answer to a question that will only get worse in terms of social, personal and community cohesion.
Post a comment (Terms of Use Policy)
(Requires free registration.)
You may also register to comment in our forums at www.fergusfeedback.com.