Citing pressures from the global recession, Bobcat Co. officials announced this morning that the company's Bismarck manufacturing plant will close, cutting 475 jobs in the capital city by the end of the year.

The operations at the Bismarck plant will be moved to the company's original facility in Gwinner by Dec. 31, where 390 jobs will gradually open for a net loss of 85 jobs. Company President Rich Goldsbury said many of those jobs will most likely be filled by former employees from the Gwinner plant.

Goldsbury called the decision "painful, yet necessary," especially as the down economy chills the construction industry that purchases the company's signature skid steer loader. He added the company decided to move the Bismarck operation to Gwinner because that facility is larger.

"We live in difficult and unprecedented times," Goldsbury said. "Our customers are hurting as the construction industry in North America is at a standstill."

The 475 Bismarck jobs that are being phased out include hourly and salaried workers. Goldsbury did not offer details on severance packages for the employees, adding they will receive a 60-day notice before their jobs are phased out.

He said the manufacturing facility and the land it sits on will be sold, but to whom or for what is still unknown. He said the company is not expecting a rebound in the "foreseeable future."

Jeremy Bauer, president of the Bismarck United Steelworkers Local 566, said union employees have a severance package in their contracts, adding company officials told him that the details of the packages will be discussed next week.

Bobcat, which is owned by South Korea-based Doosan Infracore Co., will retain 150 jobs in Bismarck for its research and development department aftermarket operations and sequencing center.

The Bismarck employees were told about the decision at 7:45 a.m. today during a meeting at the Bismarck Civic Center, Bauer said.

He said the Bismarck plant will be closed today, but will reopen on Thursday.

Goldsbury delivered the news to the manufacturing employees at today's meeting, Bauer said. He said the employees remained silent during the meeting.

"I think most people were in shock…I think people were thinking at worst we were going to have is a temporary shutdown," Bauer said. "But we had the worst case scenario handed to us this morning."

Bauer said the union attempted to talk to company officials over the last two weeks to discuss the speculation that the Bismarck plant was going to close. He said company officials did not respond to the union's request.

"We were willing to work with the company with anything that we could do to keep the Bismarck facility open," Bauer said. "We never did get any discussions with the company. We were never given any opportunity to make things work in Bismarck."

He said speculation over the Bismarck facility closing started about a month ago at a town hall meeting with Bobcat employees. He said there was discussion of consolidation in the company.

KFGO radio talk show host Joel Heitkamp said last week on the air that a source had told him the Bismarck plant was going to be closing. When asked about Heitkamp's remarks last week, company officials did not confirm or deny them.

Bauer said the impact is greater for the Bismarck-Mandan community, considering the additional 112 Bismarck Bobcat employees placed on recall earlier this year.

Employees at the Bismarck and Gwinner Bobcat plants are under separate contracts with the company, which means it would be difficult for Bismarck employees to find work at the Gwinner plant.

Goldsbury said the company is working with the governor's office and Job Service North Dakota to help out of work employees.

Gov. John Hoeven said in a statement today that his office is working with Job Service North Dakota to ensure the employees are offered timely unemployment benefits and are assisted to find new work.

Bobcat opened its Bismarck plant in 1974. Goldsbury said Bobcat is the only company in North America producing mini excavators.

"Our competition doesn't build them here," Goldsbury said. "This is a true North American and American success story with firm roots of the heart of the United States"

(Reach reporter Brian Duggan at 223-8482 or at brian.duggan@bismarcktribune.com)