PRENTICE (WAOW) – A Minnesota-based company said Monday it completed the acquisition of a heavy equipment factory in Prentice formerly owned by Caterpillar, saving dozens of jobs.
Caterpillar began laying off workers last week in plans to discontinue production at the forest products plant as part of a global restructuring to reduce costs. About 150 workers lost their jobs, the company said.
SpecSys Inc., a contract engineering and manufacturing company headquartered in Montevideo, Minn., said it bought the plant as part of its two-decade strategy to seek rurally-located manufacturing operations, Chief Executive Officer Kevin Wald said.
No purchase price was disclosed.
SpecSys sells 25,000 hours of manufacturing services and 5,000 hours of engineering services each month, Wald said.
At 220,000 square feet, the Prentice plant is a “nice step up in capacity,” Wald said in a statement. “The values you find in a rural work force have been a cornerstone of our companies from day one.”
SpecSys intends to start with producing forestry products machines in Prentice but hopes to also manufacture equipment for mining, agriculture, railroad and energy companies, Wald said. The plant was founded in 1945.
Wald’s parent company Ritalka, which stands for the Wald’s three children Riley, Tallen and Kayla, supports other companies and government agencies, according to its web site.
SpecSys, one of the Ritalka’s subsidiaries, has 225 workers at plants in seven sites in Minnesota and South Dakota, Wald said.
