A German company intends to build a manufacturing plant near Butte to assemble wind turbines for wind power machines, Gov. Brian Schweitzer and the chief executive officer of Fuhrlander AG announced Tuesday.

Construction of the $25 million plant will begin this fall at a 40-acre site about five miles southwest of Butte. The factory is expected to be open next year. The plant will assemble wind turbines, the three-by-10 meter boxes that Schweitzer described as "the brains of the operation."

Butte will be the Fuhrlander's lone wind-turbine manufacturing plant in the United States. The company has a similar manufacturing plant in Brazil and its wind turbines are in place in China, Japan, India and throughout Europe, Schweitzer said.

The plant will employ 150 people, many of them electricians and welders whose pay would range ranging between $15 and $25 an hour, plus benefits, Schweitzer said.

"This $25 million project will bring jobs and tax base to Butte and is largely a result of our 'clean and green' energy incentives," Schweitzer said.

Fuhrlander AG, based in Waigandshain, Germany, has been involved in metal processing and service industries for 40 years and has manufactured wind turbines for 20 years. Its Web site said the company has been "a pioneer in the use of wind power" for 20 years and that its "robust turbines are particularly proving themselves even in difficult wind conditions."

There is the possibility that the Butte plant could be expanded in the future to manufacture the 150-foot-long blades on wind machines. If that happens, it could create 600 additional jobs.

Joachim Fuhrlander, chief executive officer of the German company, said by telephone that a decision on the second phase will depend primarily on the market for the machines.

Butte was chosen over Hardin, Columbus, Billings and Great Falls for the site.

Schweitzer said it was a close call for the company, but it cited Butte's strong infrastructure, the availability of a factory site in a manufacturing area and its workforce. Furhlander is "very comfortable" employing organized labor, Schweitzer said, and Butte, once called the "Gibraltar of unionism," has a pool of available union workers.

Fuhrlander also cited the presence of Montana Tech and the College of Technology in Butte as an important factor to train its workforce.

Fuhrlander first discussed the possibility of the manufacturing plant with Schweitzer in early 2007 and they have had a number of discussions since.

The CEO said one reason he picked Montana was the company wanted to operate "where we could find open arms from people." Fuhrlander said that was the case from his first meeting with Schweitzer and his strong support for wind energy development.

"We could see we have the right area, we have the right political support, the right financial support and we have the windy area where the wind farms and projects are close to the manufacturing line," Fuhrlander said.

Montana has about 50 wind power projects in various phases of discussion, the Schweitzer administration said. If all were built, that would result in more than 4,000 megawatts of wind energy.

The manufacturing company will receive a number of incentives from the state and Butte-Silver Bow local government to invest here. The "Clean and Green" energy law, passed in 2007, provides for reduced property taxes for the manufacturing equipment for wind power. Besides the incentives from Butte-Silver Bow, the German company also will be eligible for loans from the state Board of Investments, job training money from Commerce Department and any incentives from Butte-Silver Bow.

Schweitzer has made energy development a top priority in his administration, from wind power to plants that convert coal to liquid fuels.

No Fuhrlander wind turbines are now installed in Montana. Those installed at the wind farm near Judith Gap are manufactured by General Electric.

Fuhrlander said a 2.5-megawatt wind turbine would cost $4 million as a turnkey operation.