ADM to close South Carolina soybean plant amid cost-cutting measures​

USA – Archer-Daniels-Midland Co. (ADM) has announced plans to permanently shut down its soybean processing facility in Kershaw, South Carolina, later this spring.

This decision is part of the company’s broader strategy to streamline operations and reduce costs.​

“After exploring many alternatives, we have determined that our Kershaw crushing plant does not align with our future operating needs,” said ADM spokesperson Dane Lisser.

The Kershaw facility, the smallest of ADM’s U.S. soy processing plants with a daily crushing capacity of 50,000 bushels, becomes the first to close amid a recent contraction in the biofuels sector. ​

The closure comes as ADM faces financial challenges, including its lowest fourth-quarter adjusted profit in six years.

In February, the company announced plans to cut 600 to 700 jobs and reduce costs by US$500 million to US$750 million over the next three to five years. ​

ADM’s Crushing sub-segment reported an operating profit of US$844 million for fiscal year 2024, a 35% decrease from the previous year. This decline is attributed to ample supplies out of South America, leading to more balanced supply and demand conditions and lower crush margins.

The company has pledged to assist affected workers with job placement support and severance pay.

“Right now, we’re focused on our colleagues in Kershaw. We have a team on-site working with impacted colleagues. For those who do leave the company, there will be appropriate financial severance, and we’ll be offering support to help them find other employment,” Lisser said.

ADM is also contending with uncertainties in U.S. biofuel policies and potential trade tensions, particularly with major soybean importer China. These factors have contributed to the company’s decision to reassess its global footprint and capital allocation.

Despite these challenges, ADM remains focused on strategic simplification and organic growth to ensure efficient operations and meet customer needs.

 “We’re continuing to look at opportunities both for strategic simplification and organic growth to ensure we’re operating the right assets to meet the needs of our customers and our company,” Lisser added.

The closure of the Kershaw plant marks a significant step in ADM’s ongoing efforts to adapt to changing market conditions and optimise its operational efficiency.

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