DMI to Become One of Continent's Largest Tower Suppliers

Otter Tail Subsidiary Selects Oklahoma Location for Third Plant

May 02, 2007, 01:00 ET from DMI Industries

    WEST FARGO, N.D., May 2 /PRNewswire-FirstCall/ -- DMI Industries, West
 Fargo, N.D., an operating company of Otter Tail Corporation (Nasdaq:   OTTR),
 has selected a location for its third fully dedicated wind tower
 manufacturing facility. The additional plant will give DMI one of the
 largest annual tower fabrication capacities in North America.
     When DMI finalizes the required approvals and permits, the company will
 acquire the plant in the Tulsa, Okla. region. The facility features half a
 million square feet of production space and ultimately will employ up to
 450 people. DMI expects to have it upgraded and customized by early 2008.
     When the Oklahoma plant is fully operational, DMI's annual combined
 tower production will support more than 3,000 MW of installed wind project
 capacity, based on today's tower and turbine technologies and designs.
     The Oklahoma facility is the second new plant acquisition for DMI in
 less than three years. The company acquired its Fort Erie, Ontario facility
 in 2005. That plant began filling orders in May 2006.
     DMI President Lars Moller said the additional plants are a strategic
 response to continental and global growth in wind development. "DMI has
 achieved success in Canada and across the northern tier of the United
 States thanks to strong demand," he said. "We plan to do the same things in
 Oklahoma and the south central United States that enabled that success. As
 for today, we're focused on finalizing this purchase, customizing the
 facility and serving the needs of our customers."
     In addition to strengthening DMI's strategic position in North America,
 the Oklahoma plant will give the company the ability to produce and deliver
 off-shore wind towers, which are larger than their land-based counterparts.
 It also allows DMI to more easily ship to expanding European and South
 American markets. The enhanced reach results from the Oklahoma plant's
 proximity to the Port of Catoosa on the Arkansas River, which provides
 access to the Mississippi River. From there, DMI can ship towers by barge
 either north to the Midwest or south to the Gulf of Mexico.
     "Demand for domestically produced wind towers is increasing rapidly,"
 Moller said. "This new plant will allow DMI to meet that demand, and with
 closer proximity to south central and southwestern projects, we'll be
 lowering the cost of delivery to site and overall cost of wind energy
     DMI's headquarters and technology functions will remain in West Fargo,
 N.D. The Oklahoma plant will positively impact the company's West Fargo
 manufacturing operation, which fabricates and distributes production tools
 and parts for all of the company's plants, and likely will result in
 additional jobs there. DMI currently has 500 employees in West Fargo and
 Fort Erie, Ontario.
     DMI is a heavy steel wind tower manufacturer that also has capabilities
 to produce equipment for a wide variety of industries, including
 agricultural processing; ethanol production; oil and gas extraction,
 processing and refining; and water and waste water processing. For more
 information, visit
     Otter Tail Corporation has interests in diversified operations that
 include an electric utility, plastics, manufacturing, health services, food
 ingredient processing and other businesses. Corporate offices are located
 in Fergus Falls, Minn., and Fargo, N.D. The latest investor and other
 information is available at

SOURCE DMI Industries