FARGO, N.D. (AP) -- Four workers at the ProGold corn milling
plant near Wahpeton are being laid off because of tough times
in the corn sweetener industry, officials said Thursday.
The cuts are part of an across-the-board move in Cargill
Inc.' s North American Sweeteners division, which is reducing
its work force by 10 percent due to sluggish market growth, a
slow national economy and high gas prices, company officials
said.
ProGold now has 110 permanent workers, General Manager
Richard " Red" Geurts said Thursday. ProGold is
owned by Golden Growers, the Minn-Dak Farmers Cooperative of
Wahpeton and American Crystal Sugar Co., based in Moorhead,
Minn.
Geurts said the plant had been reducing its work force
gradually over the last year, by not filling some jobs as they
came open. He called that a " prudent business
practice" that helped cushion the layoff blow to the
plant.
Geurts said three of the layoffs were effective this week
while the fourth worker will stay on the job until later this
month.
He said summer is the time of highest demand for the plant,
which is operating at its capacity of 85, 000 bushels a day.
The ProGold plant has had a rocky year, including a
six-week winter shutdown prompted by sluggish demand for corn
sweetener and high fuel costs. Plant employees worked on
maintenance and training during the shutdown, which ended in
March.
When they announced the plant' s reopening, Cargill
officials warned that the business climate for corn sweetener
producers was still tough and they did not rule out production
slowdowns later in the year.
" It remains a very tough business environment, I can
tell you that, " Geurts said Thursday.
Cargill also operates plants in Eddyville, Iowa; Blair,
Nebraska; Cedar Rapids, Iowa; Dayton, Ohio; and Memphis,
Tennessee.
Eddyville officials announced Thursday they would cut 60 of
the plant' s 520 positions through early retirement, transfers
to other Cargill divisions, voluntary severance and layoffs.
ProGold is owned by Golden Growers, the Minn-Dak Farmers
Cooperative of Wahpeton and American Crystal Sugar Co., based
in Moorhead, Minn.
The $261 million plant opened in 1996, just as market
prices for its high-fructose corn syrup dropped sharply. A
10-year lease signed with Cargill the next year brought
stability to the operation and allowed Golden Growers to post
profits for the last two years.
Mark Dillon, Golden Growers executive vice president, said
that while it is difficult to see people lose their jobs, any
move that keeps the plant open is good for the economy of
southeastern North Dakota.
" Whether it' s Cargill or any of the other producers,
profits have been very thin to nonexistent in fructose for the
last (few) years, " he said. |