Alien Technology closing Fargo plant
By BLAKE NICHOLSON Associated Press Writer
Posted: 05/14/2009 01:35:26 PM PDT
Updated: 05/14/2009 01:35:27 PM PDT
BISMARCK, N.D.—California-based Alien Technology Corp. is closing its Fargo plant, citing the slumping economy. The move is putting about 30 people out of work at a business once touted as a promising high-tech venture.
Alien marketing director Victor Vega said Thursday that about half a dozen workers had already been let go, and the rest would be gone by mid-June.
The plant helped make "smart tags," or radio frequency identification products, for retailers and other industries.
"Hopefully this market will pick up soon," Vega said. "It's been a tough year for everyone."
North Dakota has slightly more than $1 million invested in Alien, which is based in Morgan Hill, Calif.—half through a Commerce Department development fund and half from the state-owned Bank of North Dakota.
State Commerce Commissioner Shane Goettle said that if the Fargo plant closure is permanent, the state will work to get back that money.
"If it looks like on a permanent basis that that equity investment is not in a position to create jobs in North Dakota, then we want to work with them on a long-term plan to get our equity bought out," he said.
Alien said in a statement that it expects to make a decision on the long-term future of the plant within months. The company said all but two employees have found new jobs.
The Fargo plant opened in 2006. It was praised then as a business that could bring more than 1,000 jobs to the area and be the cornerstone for the North Dakota State University Research and Technology Park.
Tony Grindberg, the park's executive director, said he understands Alien's decision to close the Fargo plant.
"We understand the current economic recession has created a situation where Alien needs to make tough decisions to cut overhead and maintain their respective place in the market," he said.
Alien got a 10-year property tax exemption from the city that was worth about $82,500 per year. It also received a $134,000 loan from a local economic development corp. Vega said company officials are discussing the matter with corporation officials.
Alien is the latest of several companies to announce job cuts or shutdowns in North Dakota recently.
"The national recession is impacting some companies in North Dakota," Goettle said. "This is another example of that. We would hope that if things in the economy turn around, that orders would pick up and Alien's decision would not be permanent."
Sen. Byron Dorgan, D-N.D., who has worked to bring high-tech research dollars and jobs to the state, said it is inevitable that some projects will fail in the slumping economy.
"While this company is closing, there are many, many other new startup companies that are healthy and creating new jobs in North Dakota," he said.
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On the Net:
Alien Technology: alientechnology.com
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