cat to sell south dakota plant
Amsnow
Arctic Cat has agreed to sell its Madison, S.D., plant and move the work to its main facility in Thief River Falls, Minn., to increase its overall efficiency.
The move will idle 89 employees in South Dakota, while adding 50-60 jobs in Thief River Falls, where a 1,500 people currently work for Arctic. The Madison plant, which does painting, welding and subassembly work, is to close by February. Some employees will be offered work at other Arctic plants.
The company says it is consolidating operations and the move will help make it more efficient.
"We recognize that this decision is difficult for our Madison employees, with whom we have developed a great relationship. By providing this long notice, we expect that most of these employees will be able to find other employment either in the Madison area, where current employment opportunities seem strong, or at another Arctic Cat facility," said Chris Twomey, Arctic's chairman and CEO.
Long-term, Arctic Cat expects to save about $1 million a year in operating costs due to this move. It plans a 1- to 2-cent per share charge per diluted share in its fourth quarter, ending March 28, 2008, related to the move.
Earlier this year Arctic said it would move its corporate offices to the Minneapolis area from Thief River Falls. That move is expected to affect only a small number of executives and other workers.