Officials of Imation Corp., which plans to close its floppy diskette plant here over the next two years, have agreed to work with state and local officials on phasing out the operation and finding a successor, Gov. John Hoeven says.

The company now employs about 375 workers at the Wahpeton plant's three buildings, Hoeven said Thursday. Imation plans to cut about 60 jobs by the end of the year and about 70 by the end of 2008, he said. The rest of the work force will be eliminated by mid-2009.

Last week's announcement of the closing took employees and officials in Wahpeton by surprise. Imation, which makes magnetic data storage products, is the second-largest employer in the southeastern North Dakota community of about 8,500.

Hoeven's briefing Thursday came after a three-hour meeting with Imation officials at the company's headquarters in Oakdale, Minn., the day before. He said Imation Chief Executive Officer Frank Russomanno agreed to set up a working group of senior company officials to work with North Dakota officials.

"We need his help to make a good transition here," Hoeven said.

A handful of Imation employees attended Hoeven's briefing. Donna Krogh, who has been working at the plant for more than 15 years, said she and others are worried about their jobs but most of them are "cautiously optimistic" that a new company can be found.

"Some people are having a harder time than others," Krogh said. "A lot of us are trying to stay positive because we don't want to move."

Ron Cizek, the manufacturing director of the Wahpeton plant, called the plant closing an unfortunate situation, but said the company "has stepped up" to help employees.

"A two-year announcement on a site closing is pretty much unprecedented," Cizek said.

"Two years is still two years," said Harvey Henderson, a North Dakota State College of Science professor who attended the briefing. "I wish they would just be honest and tell us they can make their product much cheaper outside the country."

Imation officials have said some of its operations are being consolidated and handled by Spokane, Wash.-based Key Tronic Corp., which has a plant south of the border.

At least five of Imation's products soon will become obsolete, Cizek said. "We don't have the new products, currently, to replace them," he said.

Jan Neppl, who works at the plant with her husband, said employees were anticipating some layoffs, but not a closing.

"We certainly didn't expect a closing," Neppl said. "We feel like a family out there and we're supporting each other, but this is major."

Wahpeton Mayor Jim Sturdevant said the Imation campus - with three buildings on 95 acres of land - and skilled employees already has attracted interest from other companies. He would not elaborate.

"Wahpeton has long been the manufacturing king of our state," Sturdevant said. "We don't want to lose the edge."

Sen. Byron Dorgan, D-N.D., suggested Imation give back grant money it received to expand its Wahpeton plant, saying it could help lure other companies. He said the company got a range of grants totaling $3.2 million.