PBA Reporter
ADM Milling has ceased operations at its facility in Keokuk, Iowa, US, citing the city’s failure to align with the company’s needs as the key reason.
ADM Milling, which has a capacity of 6,000 cwts and 280,000 bushels of storage, will be attending to customers individually about production options as a result of the closing.
According to the company’s spokesperson: Dane Lisser: “Unfortunately, after exploring a wide variety of alternatives, we’ve determined that our Keokuk plant no longer aligns with our milling business’ future operational needs, and we’ve informed colleagues of our intention to permanently end production there, effective immediately.”
“We’ve appreciated the working relationship with the city as we’ve addressed their concerns,” Lisser added.
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Since January, ADM has been working with the city of Keokuk on issues related to the plant’s wastewater pretreatment. The mill experienced some extenuating circumstances that resulted in loadings to the city’s wastewater pretreatment facility. That resulted in the city’s facility being in noncompliance of its discharge permit, city officials said.
ADM acquired the mill when it purchased Ogilvie Mills, the largest Canadian miller at the time, in 1994. Ogilvie had purchased the mill from Henkel Corp. in 1985.
Lisser said ADM regularly reviews its global footprint to determine if assets are best positioned to meet customer needs and advance the company’s growth strategy.
ADM shut down the facility earlier in the year for 15 days to bring in outside resources to look at the issue. When the mill restarted, it was running at 50% capacity, ADM officials said during an April meeting with the city.
Despite the shutdown the company has been continually advancing its position as a formidable agri-commodities trader. In 2022 alone, the company has expanded its German oilseeds facility, expanded starch production at its Minnesota facility and has acquired a feed mill in the Philippines to meet Asia’s demand for quality animal nutrition products.
On these investments and favorable market conditions the company has registered strong growth in its profits in the first and second quarters of the 2022 fiscal year.
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