American Engineered Products, a Minnesota manufacturer of flagpoles, is moving its business to De Smet, S.D., about 100 miles northwest of Sioux Falls.
The company, which also makes slot machine bases, plans to hire 15 to 20 employees who will begin working Nov. 1, according to the South Dakota governor's office.
"American Engineered Products' decision to set up shop in our state is a testament to South Dakota's business-friendly environment," Gov. Dennis Daugaard said in a press release.
The company's current plant is in New Market Township, just outside Elko New Market. It was not clear whether any workers would lose their jobs.
The company has leased a building from the De Smet Development Corp., a city-supported nonprofit, said Rita Anderson, the nonprofit's director. She said American Engineered Products received no other assistance.
The governor's press release quoted Audrey Saylor, American Engineered Products vice president of operations, as saying the company is making the move "to significantly reduce our monthly production costs." She also said it is an ideal setting to raise a family.
Saylor did not return calls seeking comment.