In a state fueled by a farm economy, the community of Wahpeton stands alone in touting itself as the most industrialized city in North Dakota.

That may work in Wahpeton's favor as it tries to replace the 390 jobs it is slated to lose over the next two years with the phasing out of the Imation Corp. plant, city and state officials say.

Larry Leistritz, a North Dakota State University professor and researcher, said the impending shutdown of Imation may be the largest loss of manufacturing jobs in the state, at least in recent years.

Imation makes magnetic data storage products. The company announced Monday afternoon that its Wahpeton plant will close by mid-2009 because the diskettes it makes are becoming obsolete.

Wahpeton, a town of about 8,500 in southeast North Dakota, has factories that make such things as wood products, corn syrup and rubber belts for farm machinery.

"Up until yesterday, one of every four jobs in this city was in manufacturing," Jane Priebe, the city's economic development director, said Tuesday. "We will continue to have a highly trained work force that can only be attractive to other manufacturing firms."

Wahpeton is the county seat for Richland County, and the county's manufacturing work force mirrors the city's, Leistritz said. About a quarter of the 10,000 or so jobs in the county are in manufacturing, mostly in Wahpeton, he said.

"Wahpeton probably has the highest percentage of manufacturing jobs in the state and it has been that way for at least 20 years," Leistritz said.

"In terms of not having to train workers in manufacturing, Wahpeton might be a very attractive location for a manufacturer looking for a site for a facility," Leistritz said.

Manufacturing accounts for less than 10 percent of the state's economy, ranking fourth behind agriculture, tourism and energy, Leistritz said.

The loss of jobs at Imation, which is second only to PrimeWood Inc. in the number of employees in Wahpeton, will be a huge hit to the city, Mayor Jim Sturdevant said.

"To replace those 390 jobs, we have to get on it early and work hard to retain those people here," Sturdevant said.

On Tuesday, city officials began trolling for companies who may be interested in moving operations to Wahpeton, including two that had inquired about a year ago, Sturdevant said. The companies, which he would not name, wanted buildings with at least 100,000 square feet of factory space.

"At that time, we had none available," Sturdevant said. Now, there will be three buildings of that size that Imation owns that would fit the criteria, he said.

North Dakota Commerce Commissioner Shane Goettle said the state will work with the city and Imation officials to ensure a smooth transition.

"We will work closely with the city to find a replacement tenant," Goettle said. "I don't want to underestimate the challenge, but there are opportunities. Right now, building space and skilled workers are in demand, and that's the advantage we have, and an attractive asset to try and sell."

Ernie Goss, an economics professor at Creighton University in Nebraska, said many communities nationwide are competing for those same companies, which are becoming fewer.

"Wahpeton is not unique at all," Goss said. "Across the nation, we are losing manufacturing jobs."

Goss said it doesn't hurt that Wahpeton has a factory-ready work force.

"All things being equal, it is a good selling point to have workers who were in manufacturing," he said. "Unfortunately, not a lot of companies are looking to relocate or expand. Most are in opposition to that - they're cutting back or relocating outside of the U.S."

Goss said it is important for communities to diversify their economic base or be, as he calls it, "nimble on their feet."

Priebe, Wahpeton's economic development director, said that's the city's goal.

"We don't expect one company to sweep in and take over all three of Imation's buildings," Priebe said. "We do foresee three or possibly four coming in, maybe in high tech or other fields that would diversify our manufacturing sector. We're not counting on any one particular business sector now."