Wedoany.com Report-Apr. 24, Archer-Daniels-Midland (ADM) will permanently close its soybean crushing facility in Kershaw, South Carolina, this spring, the company confirmed on Monday. The decision aligns with a cost-reduction and consolidation strategy announced earlier this year, targeting savings of $500 million to $700 million over the next three to five years.

The Kershaw plant, the smallest of ADM’s U.S. soybean crushing facilities with a daily capacity of 50,000 bushels, no longer fits the company’s future operational plans. “After evaluating a wide range of alternatives, we have concluded that our Kershaw crushing plant no longer meets our future operating needs,” said ADM spokesman Dane Lisser.

ADM has been adjusting its operations, including reducing staff and scaling back certain activities, following challenges from a prior accounting issue that affected its stock price. The company is now navigating a complex market environment, including shifts in global demand for soybean products.

The closure marks the first shutdown of a U.S. soybean crushing plant after a period of industry growth driven by demand for vegetable oil, particularly from biofuels producers. Recent uncertainties in U.S. biofuels policies have led to reduced production in this sector, impacting facilities like Kershaw.

ADM is committed to supporting affected employees by assisting with job placement and offering severance packages for those who opt to leave. The company did not specify the number of workers impacted by the closure.