Archer Daniels Midland Co. (ADM) has laid off 43 employees at an
Iowa bioplastics plant, but will retain the remaining 46 workers as
it decides what it will do with the plant after ending a joint
venture that was housed there.
The company told the employees Friday their positions at the
Clinton, Iowa, plant were eliminated. ADM had announced in January
it was ending a bioplastics joint venture with Metabolix Inc.
(MLBX), citing uncertainty about projected financial returns. The
company posted a $339 million write-down in the second quarter on
the venture, which had been formed in 2006.
The remaining 46 employees will stay on as ADM prepares the site
for an idle period, the company said.
"Although we are exploring options, we have not yet made
long-term decisions about staffing levels or alternative uses for
the polymer production facility," Kevin Moore, vice president and
general manager for specialty feed ingredients, said in a
statement. "It's a world-class facility capable of producing a
variety of products."
The plant is part of a larger corn processing complex in
Clinton, where ADM has about 1,000 employees and "will continue to
have a major presence," Moore said. ADM is based in Decatur,
Ill.
The cuts come amid a broader move to eliminate about 1,000 jobs,
or 3% of the company's workforce, announced in January. Company
profits have sagged recently due to poor oilseed processing margins
and volatile global grain markets.
On Monday, ADM announced it was closing a small North Dakota
ethanol plant, affecting 61 employees.
-By Ian Berry, Dow Jones Newswires; 312-750-4072;
ian.berry@dowjones.com