WAHPETON (AP) - Imation Corp., a maker of magnetic data storage products, says it plans to close its diskette-making plant here in two years because diskettes are becoming outdated. The plant has a work force of about 390.

Monday's announcement took city officials by surprise, Mayor Jim Sturdevant said. The Imation plant, formerly owned by 3M company, had announced a $10 million expansion in 1999.

"I was city auditor when it first came about more than 30 years ago," Wahpeton state Sen. Arden Anderson recalled Monday night. "I think we'll have to just digest what they've said to this point and get a little more information."

Gov. John Hoeven's office said Job Service officials would work with employees in Wahpeton.

Diskettes are "only a small, rapidly declining part of the market and they are nearing their end of life," Subodh Kulkarni, an Imation vice president, said in a statement issued by the Oakdale, Minn., company on Monday.

"The decision to exit the Wahpeton plant and to consolidate and outsource converting operations from all of our other plants is difficult but necessary as we move forward to optimize our manufacturing strategy," the statement said.

The company was giving advance notice to work with communities and employees, the statement said.

Imation's statement said it would focus manufacturing on magnetic tape coating at plants in Camarillo, Calif., and Weatherford, Okla. It plans to eliminate about 675 jobs worldwide, out of a total of 2,070 by mid-2009, and expects about $25 million to $30 million in restructuring charges, about half of which will be recorded in the second quarter.

Imation shares closed down 44 cents, or 1.2 percent, at $36.97.

The company also said it will buy consumer electronics company Memcorp Inc. and Memcorp Asia Ltd. from privately held Hopper Radio of Florida Inc. for about $60 million in cash and notes.

Memcorp markets and distributes consumer electronics under the Memorex brand, which was acquired by Imation in 2006.