Tulsa World: DMI halts expansion, cuts jobs at factory

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DMI halts expansion, cuts jobs at factory
The wind tower maker cites lower demand for alternative energy.

By KYLE ARNOLD World Staff Writer
Published: 1/6/2009 2:23 AM
Last Modified: 1/6/2009 4:23 AM

DMI Industries, a maker of wind towers, says problems with credit markets have forced it to lay off about 50 people at its Tulsa factory.

The Fargo, N.D., company is cutting about 20 percent of its 275 local employees and is making similar cuts at a factory in Stevensville, Ontario, and at its headquarters.

The layoffs come just four months after company officials announced plans to expand the Tulsa factory at a cost of about $30 million and increase the work force to about 450. Since then, the company had hired about 50 people.

"It's amazing how quickly things can change," DMI President Stefan Nilsson said.

Employees received word of the layoffs Sunday and Monday.

DMI's Tulsa factory opened last March and saw an immediate bump in business as high fuel prices drove demand for cheaper, greener energy sources. But with fuel prices on the decline and the economy in recession, company officials say many wind farm projects are being delayed or scaled back.

"Wind farm developers have struggled to hang on to the financing for their projects," Nilsson said.

DMI had already started its Tulsa expansion when the country's financial downturn accelerated, he said, adding that even though the work force will be cut, DMI will produce more wind towers in Tulsa this year than in 2008.

"We don't think that these investments were bad, but maybe a little premature," he said.

DMI's layoff marks the second significant cut by a Tulsa wind tower manufacturer

in two months. Trinity Towers shuttered its factory in November, eliminating 131 jobs. Trinity managers also cited slower demand from wind farm projects and credit market issues for the plant's closure.

David Carr, the assistant director of the Alternative Energy Institute in Canyon, Texas, said recent economic conditions have been troubling for wind farms, especially the decrease in the price of fossil fuels.

"With renewable energy, anytime fossil fuels go down it makes it a tougher market," he said.

DMI Industries

Product: Towers for wind turbines

Location: 15300 Tiger Switch Road

Opened: March 2008

Employees: 275 Layoffs: About 50

Kyle Arnold 581-8380
kyle.arnold@tulsaworld.com By KYLE ARNOLD World Staff Writer

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	Report Comment lil sparrow, Midwest Flyway (1/6/2009 5:42:18 AM) Song of the Day: "Maggie’s Farm," Bob Dylan
	Report Comment chase, rogers county (1/6/2009 7:01:47 AM) I thought T Boone had a plan to help end our dependence on foreign oil.well that didn't last long.
	Report Comment meowmix, (1/6/2009 8:12:03 AM) Are they still eligible for the $12 million payroll tax rebates offered by the state?
	Report Comment Eric, Tulsa (1/6/2009 12:38:03 PM) Sorry to read about this. Sorry, too, the learn about the layoffs at the Tulsa World.

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