Global agribusiness giant ADM is set to stop operations at its soyabean crushing plant in Kershaw, South Carolina, USA, according to a World Grain report.
The company said the plant’s closure was part of a continuing assessment of its global footprint and capital allocation, the 18 April report said.
“Within our Ag Services & Oilseeds business, we’re taking a strategic approach to optimising our network,” ADM spokesperson Dane Lisser was quoted as saying.
“This involves identifying opportunities for investments to upgrade and modernise our footprint, as well as difficult decisions about possible options for consolidation. As part of the process, after exploring a wide variety of alternatives, we’ve determined that our Kershaw crush plant no longer aligns with our future operational needs.”
The announcement of the plant closure came after the global agribusiness posted its lowest fourth quarter adjusted profit in six years and announced in February that it planned to reduce its workforce by 600-700 people in 2025 and cut costs by US$500M-700M over the next three to five years, including US$200M-300M this year, World Grain wrote.
ADM said its fiscal year 2024 operating profit for its crushing sub-segment was US$844M, 35% lower than the previous year, as abundant supplies from South America drove more balanced supply-and-demand conditions, leading to lower crushing margins.
In March, the company confirmed that it was cutting an undisclosed number of jobs from its grain trading and oilseeds processing segment. The Ag Services & Oilseeds division comprises the company’s global crop trading, transportation and storage, and oilseed processing operations.
“ADM is always assessing its portfolio as part of its commitment to capital discipline,” Lisser said. “We’re focusing globally on strategic simplification and organic growth to ensure we’re operating the right assets to meet customer needs, achieve our returns objectives and be the most efficient operator of each part of the business.”
