Archer-Daniels-Midland (ADM, Financial), one of the world's largest agricultural processors, confirmed its decision to permanently close its soybean processing plant in Kershaw, South Carolina. This move is part of ADM's broader cost-reduction and consolidation strategy announced earlier this year, aiming to cut $500 million to $700 million over the next three to five years.
ADM's spokesperson stated that after evaluating various alternatives, the Kershaw plant no longer aligns with the company's operational needs. The closure comes amid intensified trade tensions between the U.S. and key markets, following a significant drop in ADM's stock price due to an accounting scandal last year.
The Kershaw facility will be the first U.S. soybean processing plant to close after years of industry expansion driven by increased demand for vegetable oil from biofuel producers. However, recent uncertainties in U.S. biofuel policies and potential trade conflicts have led to production cuts in the biofuel sector.
ADM plans to assist affected employees in finding new jobs and will offer severance packages to those who choose to leave. The Kershaw plant, one of ADM's smallest, processes 50,000 bushels of soybeans daily and employs between 11 to 50 workers.
