Bismarck Tribune - North Dakota News - Bobcat to distribute from Minn.

Bobcat to distribute from Minn.

May 10, 2008 - 04:05:57 CDT

By JAMES MacPHERSON
Associated Press Writer

Bobcat Co.'s new worldwide distribution center in Minnesota will not derail plans for the company's involvement in a proposed $20 million public-funded shipping facility in Bismarck, city and company officials say.

"Nothing has changed," said Chris Weishaar, a spokesman for West Fargo-based Bobcat, which is known for its skid-steer loaders.

More than $1 billion of the company's machinery will be shipped annually from the Brooklyn Park, Minn., facility to markets in the U.S. and abroad. The 92,000-square-foot facility also will be used for final assembly for a new line of imported compact tractors, Bobcat spokeswoman Nikki Bruce said.

The facility will employ 25 people and will be in full operation late this month or early June. It will handle product from Bobcat's North Dakota plants in Bismarck and Gwinner, and from an accessories factory in Litchfield, Minn.

"It's a way of improving the logistics of everything," Weishaar said.

Products manufactured in North Dakota and destined for domestic dealers west of the state will continue to be shipped from Bismarck, Bruce said.

Bobcat is the sole tenant at Bismarck's Northern Plains Commerce Centre, which has been touted as a step toward global competition for the city. The facility, which is still under construction, will allow companies to ship product by rail, plane or truck.

City officials say more than $11 million has been spent on the complex so far, mostly with local sales tax money.

Bobcat moved into a warehouse in the complex in the summer of 2006, signing a 50-year, $100,000-a-year lease for the space, which functions as a manufacturing service center.

"Bobcat has assured us (the Brooklyn Park facility) will have no impact on what we have up and running for them," said Cathy Spencer, spokeswoman for the Bismarck center.

Bobcat confirmed the commitment.

South Korea's Doosan Infracore Co. purchased Bobcat in November from Bermuda-based Ingersoll-Rand Co. Ltd. in a deal worth $4.9 billion.

Doosan said the deal was the largest overseas acquisition in Korean history. The company said it now will have a network of more than 3,500 dealers worldwide and 20 manufacturing plants in the U.S., Europe and China.

News > State

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Comments

steve C. wrote on May 11, 2008 8:00 AM:

" when IR "bought" (aquired through hostile takeover) Melroe, from Clark Equipment, they paid 1.3 billion. In 8 years they sold to Doosan for 4.3 billion. We are not talking millions but billions of dollars. IR could have easily funded this project on their own and charged any "rent" to future tenants. But in typical IR fashion, they elected to have the city pick up the tab, which proves that this was a risky undertaking. The city taxpayers will be the one to lose when this commerce center fails. You can blame your Mayor for promoting a project like this. The cart was put in front of the horse again. "

Snookered wrote on May 10, 2008 11:45 PM:

" Why don't you esplain it to us again how this benifits us so us dummies can understand. "

here we go again wrote on May 10, 2008 6:20 PM:

" To "have you thought about this": It is interesting to hear from an "inside perspective". The conversation seems to be much "smarter". The Koreans have been nothing but supportive and generous to this point. They bring a collaborative environment to the relationship. This is a GOOD thing for ND. It was never secure with IR, and I believe it is the same to better with our Korean partners. As far as the comment about the bad deal the City of Bismarck got for the rent Bobcat pays, I wonder if they looked into the fact of the upfront money Bobcat put into the project. The deal included a lot of speculative business decisions that allowed Bobcat and city officials to arrive at the deal they did. Take a business course and find out the facts about the deal and then decide if this was ok for the two entities. "

have you thought about this wrote on May 10, 2008 5:51 PM:

" As an indirect employee of this business that you so dislike, i thank god everyday that the Korean based company bought them. If not for them I would not have a job. What would you say if the Koreans all of a sudden bought all of the Fast food joints in America, would you stop going to them and start complaining about that or would you shut up and eat the food? Its the same product nothing has been changed, continue your research before you speak. "

here we go again wrote on May 10, 2008 3:37 PM:

" This is, and was, a business deal to help Bobcat and the City of Bismarck. The Korean company you speak of probably saved Bobcat Company. And that same Korean pays the salaries of many people in Bismarck, and supports a large amount of this local economy. Before you shoot your ill informed mouth off and poo-poo on Korean held companies, check your wallet and be glad someone wanted Bobcat bad enough to keep it here. Keep your computer keyboard silent until you know the facts and can write intelligently on the subject. Bobcat Company is keeping the center project alive. If not no further Bismarck based companies will have the opportunity to benefit from its existence. That is why this center was built- for the benefit of BISMARCK, which is still in the US the last time I checked. Go research what the commerce center is about, then report back. "

oz wrote on May 10, 2008 3:28 PM:

" The Concrete White Elephant:

Lets see. If the mayor was investing his own money and got a .9 of 1% return on his own money would he be crowing about his investment. This was a sweetheart deal to Bobcat at the taxpayers expense. TIme to admit that this thing is a bust, sell the property and fire the Mayor. I wonder how much a square foot Bobcat is paying. Probably not retail rates.

"

TF wrote on May 10, 2008 3:05 PM:

" The "deal" that you are talking about is for 50 years at 100,000 a year. That is no deal, it's a huge waste of money. "

kk wrote on May 10, 2008 1:36 PM:

" I see that but nevertheless we are providing for an Korean company instead of our own~pretty simple~ once it was sold to a Korean company I would have retracted the $$$$~just my opinion~ not asking to be "conformed or judged"~it is America and I have a right to my own opinion "

To kk wrote on May 10, 2008 12:33 PM:

" Read the article again, this took place before the Korean company purchased Bobcat. The deal took place when the Bermuda based company controlled Bobcat. "

kk wrote on May 10, 2008 9:18 AM:

" PUBLIC FUNDED????? Have the people had a chance to vote on this? We are supporting a Korean company with our money???? "

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