“This announcement is well-timed,” said Stefan Nilsson, president of West Fargo-based DMI. “Customer demand for our facilities for 2009 and 2010 production is so strong that we need to expand to continue to meet market demands.
“With multiple locations, DMI is exceptionally well-positioned in the high-growth wind energy industry and we enjoy a reputation for outstanding quality and reliability within the industry,” he pointed out.
For the Oklahoma facility, the approval means an earlier than anticipated activation of phase two of its strategic development plan since acquiring the property less than a year ago. This news closely follows the recent release of the facility’s first tower shipment, which took place in mid-May.
In addition to increasing capacity, the expansion at West Fargo will streamline the production process through improvements in layout and productivity. It is the first phase of a strategic development plan for this facility, responding to ever-growing customer demand.
“Both facilities will begin their projects immediately,” Nilsson said. “They will be ready to accommodate 2009 and 2010 production demands. Increasing their capacities also requires an investment of about $30 million and the employment of an additional 350 or more skilled workers. That’s more good news for the communities of these two facilities.”
Once completed, DMI will be the largest wind tower manufacturer in North America.
“This investment shows Otter Tail’s commitment to DMI and the opportunity to participate in the growing renewable energy industries,” said Chuck Hoge, manufacturing platform vice president for Otter Tail. “We are proud of DMI and its employees for what they have accomplished and look forward to continued growth and successes. In addition, as work begins on both these expansions, we appreciate the ongoing support of the states and communities where the plants are located.”
The announcement came shortly after a government and industry study showed wind energy could generate 20 percent of the nation's electricity by 2030.
“This level of wind power is the equivalent of taking 140 million cars off the road,” said Randall Swisher, executive director of the American Wind Energy Association. “The report identifies the central constraints to achieving 20 percent — transmission, siting, manufacturing and technology — and demonstrates how each can be overcome. As an inexhaustible domestic resource, wind strengthens our energy security, improves the quality of the air we breathe, slows climate change and revitalizes rural communities.”
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