ADM closes soybean processing plant in the US

Archer-Daniels-Midland ADM will permanently close its Kershaw, South Carolina, soybean crushing plant this spring as part of a cost-cutting and consolidation program announced earlier this year, the company confirmed to Reuters on Monday.

ADM has been cutting jobs and scaling some operations since it announced plans in February to cut costs by $500 million to $700 million over three to five years.

“After evaluating a wide range of alternatives, we have concluded that our Kershaw crushing plant no longer meets our future operating needs,” ADM spokesman Dane Lisser said.

The company, still reeling from an accounting scandal last year that sent its stock price tumbling, now faces significant challenges amid rising trade tensions between the United States and key markets, including the world’s largest soybean importer, China.

The Kershaw plant would be the first U.S. soybean crusher to close after years of expansion amid soaring demand for vegetable oil from biofuels producers, according to industry sources.

However, the biofuels sector has been cutting production lately due to uncertainty over U.S. biofuels policy and the potential for a worsening trade war.

The Kershaw plant is the smallest of more than a dozen dedicated soybean crushers operated by ADM in the U.S., with a capacity of 50,000 bushels per day, according to industry sources.

ADM said it would help Kershaw employees find new jobs and provide severance packages for those who choose to leave the company, but did not disclose the number of workers affected.

Tags: soybean, USA, China