Ottobock, a private German prosthetics manufacturer that has had operations in Minnesota since 1958, is closing its North American regional headquarters, its fabrication operations and its distribution center in Plymouth, and moving about 200 jobs to Salt Lake City; Austin, Texas; and Louisville, Ky.
The moves will take place throughout the year and are designed to gain efficiencies as the company consolidates operations worldwide, said Brad Ruhl, president and CEO of Ottobock's U.S. health care division. For example, putting fabrication operations with manufacturing will help the company better meet the needs of its patients, Ruhl said.
Most Minnesota employees will be given the option to relocate, Ruhl said. Those who do not will get severance packages and outplacement assistance.
"What we are most focused on is making sure we are taking care of our employees," he said.
Karen Lundquist, director of communications for Ottobock's North America operations, said employees were told of the impending move last week. The company is not moving any sales functions out of Minnesota, she said.
Still, Lundquist said, officials understand that it will take time for workers to absorb the news. "Obviously, every time people's lives are involved, it's a big deal," she said.
On Monday, the Utah Governor's Office of Economic Development announced that Ottobock is expanding its existing manufacturing and research and development center in Utah.
"The international reach of Ottobock HealthCare strengthens and diversifies Utah's life sciences and composites sectors," said Spencer Eccles, the office's executive director. "Utah is a destination for global business expanding in the U.S. With this expansion, the company will find our multilingual and productive Utah employees unrivaled by any other workforce around the world."
