POST FALLS - Ground Force is going underground.

Ground Force Manufacturing, which builds mining support equipment in Post Falls for companies around the world, has purchased the 10-acre Knife River property across Seltice Way from its facility.

The new company that will occupy the site, Under-Ground Force, will manufacture equipment for underground mining companies.

Ground Force has primarily focused on larger equipment for open-pit mining firms, but the new venture will produce smaller products for underground mining.

"The equipment we build today (with Ground Force) will be the same, but much smaller (with Under-Ground)," CEO Ron Nilson said. "This equipment will be designed specifically to operate in underground mines."

The equipment includes ammonium, nitrate, fuel, oil trucks, fuel and lube trucks, service trucks, mechanic trucks and motor graders.

Nilson estimates the investment in the new site, including the land, buildings, remodel, a new roof and a planned 50,000-square-foot expansion, will be about $4.5 million.

He said the Knife River site will be remodeled in about a month after the concrete and asphalt company moves out.

"Our new factory is only 200 yards from our existing plant," Nilson said. "Being so close, we will be able to utilize a lot of the same resources."

Knife River will consolidate its operations on Seltice with its site on Wyoming in Rathdrum.

Nilson said about 20 people, including a management staff, will be hired to start Under-Ground Force.

"Our goal is to have close to 50 people by the end of the year," he said. "We anticipate posting jobs March 1."

Wages and positions will range from $12.50 per hour for office staff, $42,000 a year for shop floor positions, $50,000 for supervisors and the vice president of operations $80,000.

Staff will include sales, engineers, accountants, welders, mechanics and machinists.

Steve Griffitts of Jobs Plus called the new venture "a wonderful investment in our community."

"Ron is the one who is taking the risk," Griffitts said. "He could've moved his company anywhere. We're grateful that he's keeping it here."

Before Knife River purchased the site about six years ago, it was occupied by Norm's Excavating.

Ground Force - and soon-to-be Under-Ground Force - is a licensed manufacturer for Caterpillar. Nilson and Griffitts will meet with Caterpillar officials later this month to discuss the possibility of locating a Caterpillar manufacturing plant here that could employ as many as 400. Caterpillar doesn't have a manufacturing plant in Idaho.

"All we're trying to do is support Caterpillar's effort to capture some of the business," Nilson said, adding that a focus of Under-Ground's effort will be on silver mining.

The past two years have been a roller-coaster ride for Ground Force. In fall 2009, the company laid off 40 employees, about half of its staff. But higher prices and demand for metals have meant the industry is on the upswing.

The company has hired 20 people in the past three months and is up to 87 employees. The facility is now operating seven days a week.

"It's the highest employee count we've had," Nilson said. "We anticipate 100 at the halfway point this year."

The company has even had to out-source some work to Washington because it can't keep up with orders on a limited applicant pool of trained workers.

"We currently have eight months worth of orders," Nilson said. "Mining is very strong around the world."

Nilson was instrumental last year in getting voter-approved funding for the future Kootenai Technical Education Campus high school on the Rathdrum Prairie.

Nilson said the school gives him confidence that there will be more skilled laborers in the area to support future businesses.

"KTEC will be in our bag of tools when we try to attract other companies such as Caterpillar here," he said, adding that other factors such as affordable power, housing and workers' compensation help. "People have no idea what the long-term affects of KTEC will be."