The decision follows a comprehensive review of ADM’s operations. “After exploring a wide variety of alternatives, we’ve determined that our Kershaw crush plant no longer aligns with our future operational needs,” said Dane Lisser, ADM spokesperson. The company has been streamlining its operations, including reducing jobs and scaling back certain facilities, to improve efficiency.
The Kershaw facility, capable of processing 50,000 bushels of soybeans daily, is the smallest among ADM’s more than twelve dedicated soy processing plants in the United States. Its closure marks the first U.S. soybean processing plant to shut down after an industry-wide expansion driven by increased demand for vegetable oil from biofuel producers. However, recent uncertainties in U.S. biofuels policy have led to reduced production in the sector, impacting facilities like Kershaw.
ADM is committed to supporting the affected workers, estimated to number between 11 and 50, according to South Carolina Department of Commerce data. The company will assist employees in finding new job opportunities and offer financial severance packages for those choosing to leave. ADM did not specify the exact number of impacted workers.
The closure comes as ADM navigates challenges, including a prior accounting issue that affected its stock price last year. Additionally, the company faces market pressures due to shifts in global trade dynamics, including demand from major soybean markets. The Kershaw plant’s closure reflects ADM’s efforts to adapt its operations to current economic conditions while maintaining competitiveness in the agricultural processing industry.
This strategic move aligns with ADM’s focus on optimizing its operational footprint and ensuring long-term sustainability. By consolidating resources, the company aims to strengthen its position in the global grains market while addressing evolving industry demands and economic factors.
