GRAND FORKS, N.D. (AP) — North American Foods has told workers at its dehydrated potato flake processing plant here that the plant will close March 15.
The company, which had been known as RDO Foods Co., employs about 125 people at the Grand Forks plant.
Officials at the R.D. Offutt Co. corporate office in Fargo confirmed the closing plans. Offutt holds a majority interest in North American Foods, which is based in Lewisville, Idaho.
North American also owns potato-processing facilities in Idaho and Nevada that will remain open.
''In essence, there is excess capacity in the industry. This is part of the consolidation in the industry,'' said Paul Noah, an Offutt official in Fargo.
A company memorandum given to employees Tuesday said the decision to close the plant ''was a result of the company's ability to bundle resources and increase efficiencies to better serve customers.''
''After the plant closure, terminated employees can apply for unemployment compensation benefits to assist with employment transition,'' the memo said. ''The Grand Forks area continues to enjoy very low unemployment rates which also will aid employees with finding new jobs.''
Dehydrated potato flakes are used for making instant mashed potatoes that are sold primarily to institutional food groups. North American Foods produces retail, food service and warehouse club brand of potato products under the brand name of Idahoan.
