ADM Closing North Dakota Ethanol Plant, Citing Location

Date : 02/06/2012 @ 1:32PM
Source : Dow Jones News
Stock : Archer-Daniels-Midland Company (ADM)
Quote : 44.81  -0.09 (-0.20%) @ 4:00PM

ADM Closing North Dakota Ethanol Plant, Citing Location

Archer Daniels (NYSE:ADM)
Historical Stock Chart

5 Years : From Apr 2012 to Apr 2017

Click Here for more Archer Daniels Charts.

Archer Daniels Midland Co. (ADM) will close a North Dakota ethanol plant in April, the company said Monday.

ADM is closing the plant, in Walhalla, N.D., "because its geographic location and scale made it difficult to compete in the marketplace," the company said in a statement. It said returns at the plant weren't sufficient.

The plant had an annual capacity of 30 million gallons per year, a small amount versus the 1.72 billion gallons of capacity the company will continue to have after the closure.

The closure will affect 61 employees. ADM said it will offer severance packages and that employees may have opportunities to apply for jobs at other company facilities.

ADM announced in January it would cut about 1,000 employees, or about 3% of its workforce. ADM and other grain merchandisers have struggled in recent months with poor oilseed processing margins and volatile markets.

CEO Patricia Woertz also noted in an earnings conference call last week that ethanol margins have struggled recently amid excess supplies, although the company signaled that it didn't plan significant production cuts in response.

Closure of the plant won't affect ADM's ability to serve customers, the company said.

ADM shares were recently down 0.5% to $29.41 a share.

-By Ian Berry, Dow Jones Newswires' 312-750-4072; ian.berry@dowjones.com




Your Recent History
LSE
GKP
Gulf Keyst..
LSE
QPP
Quindell
FTSE
UKX
FTSE 100
LSE
IOF
Iofina
FX
GBPUSD
UK Sterlin..
Stocks you've viewed will appear in this box, letting you easily return to quotes you've seen previously.

Register now to create your own custom streaming stock watchlist.


NYSE, AMEX, and ASX quotes are delayed by at least 20 minutes.
All other quotes are delayed by at least 15 minutes unless otherwise stated.