ADM to close South Carolina soy plant and cut China staff in cost-cutting push

Archer-Daniels-Midland will permanently close its soybean processing plant in Kershaw, South Carolina, later this spring, and is scaling back its operations in China as part of a global restructuring aimed at cutting $500 million to $700 million in costs over the next three to five years.

The Kershaw facility, which processes up to 50,000 bushels of soybeans per day, is the smallest among ADM’s more than a dozen U.S. soy crush plants. “After exploring a wide variety of alternatives, we’ve determined that our Kershaw crush plant no longer aligns with our future operational needs,” ADM spokesperson Dane Lisser said on Monday.

The move marks the first U.S. soybean plant closure since the industry expanded capacity to meet growing demand for vegetable oils used in biofuel production. However, that demand has slowed in recent months amid uncertainty over U.S. biofuels policy and concerns about a potential escalation in trade tensions with China, the top importer of U.S. soybeans.

ADM said it will assist affected workers with job placement and provide severance pay for those leaving the company. It did not disclose the number of impacted employees. According to South Carolina Department of Commerce data, the plant employed between 11 and 50 people.

In a parallel move, ADM is also winding down domestic trading operations in China, beginning layoffs at its Shanghai-based Agricultural Services and Oilseeds unit—its largest business segment. According to a source familiar with the matter, the cuts will reduce staffing at its Toepfer Shanghai subsidiary from about 40–50 people to just 10. A second source confirmed that roughly 30 employees would be let go this week, with the wind-down to be completed by the end of September.

ADM stated the changes are intended to help the company “remain agile in a challenging environment.” Other ADM operations in Shanghai will remain unaffected.

The restructuring follows a difficult year for ADM. The company is still recovering from an internal accounting investigation that surfaced in early 2023 and contributed to a sharp decline in its share price. In February, ADM posted its weakest fourth-quarter adjusted profit in six years. Operating profit in its Agricultural Services and Oilseeds division fell 40% in 2023, pressured by low crop prices, weakened processing margins, and inflation-affected demand.

Rising geopolitical tensions between Washington and Beijing have added further strain on ADM’s trade-based business model. The company relies heavily on the flow of grain and oilseeds between the U.S.—a leading exporter—and China.

Despite the headwinds, ADM shares closed 1.3% higher at $46.43 on Monday, rebounding modestly after reaching a five-year low the previous week.