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Officials with AcroTech Midwest Inc., a manufacturing firm and supplier to the RV industry in Riverton, Minn., announced that it will move its operations to South Dakota, according to the Brainerd Daily Dispatch.
Acro Tech workers were told workers the firm planned to move to a new manufacturing plant in Watertown, S.D, by the end of February.
The paper reported that union representatives at the plant were notified by mail of the closing on Tuesday (Sept.7).
The company, which employs about 154 people, manufactures plastic blow-molded fuel tanks for the recreational vehicle market.
AcroTech President Stephen Abernathy said the company went through a total cost analysis and decided it would be more competitive in a new facility.
“It was a very tough decision anytime people are involved to close the plant,” Abernathy said. “It is a final decision. We wouldn’t have gone through all of this unless it was a final decision.”
In South Dakota, Abernathy said, there is no corporate or personal income tax and utility building costs are lower. Addtionally, he said, the company was in need of a new facility to accommodate new manufacturing equipment.