WILLMAR, Minn. — Buhler Industries will move production of its Farm King agricultural equipment line from its facility in Fargo to Willmar, Minn., and close the plant later this year.
The Canadian-based company said the move is being taken in response to trends in agriculture and manufacturing, according to a news release.
“This change will reduce excess manufacturing capacity and will enable the company to remain competitive without compromising quality,” according to the news release.
In a brief telephone interview Tuesday, Alexey Nikitenko, vice president of Farm King in the corporate office in Winnipeg, said the transition to move production from Fargo to Willmar will take four to five months.
Product lines currently manufactured in Fargo will be relocated to the Willmar factory this summer and production in Fargo will cease on Sept. 30, according to the news release.
Nikitenko said it’s not known at this time how many potential new employees will be added to the Willmar facility, adding that some details of the move have not yet been finalized.
The Fargo manufacturing and warehouse operation currently employs about 35 people.
Making the move from Fargo to Willmar to improve production efficiency is the result of “unpredictability in the agriculture commodities market and fluctuations in the exchange rate” as U.S.-based, Farm King-branded products are marketed in Canada, according to the news release.
On its company website, Buhler reported first quarter 2020 revenue of $49.2 million, which was down from $57.3 million in the first quarter of 2019. The company attributed lower sales to trade uncertainties, bad harvest conditions, poor crop yields and low commodity process.
The company said the network of Farm King dealers in Canada and the United States will not experience delays in delivery of goods or service parts during the transition of moving production from Fargo to Willmar.