Archer Daniels Midland anncouned that it plans to close two animal feed plants at its animal nutrition division in France. The company continues to reorganise the business after the takeover of Neovia in 2019.
According to the news in Reuters; the proposed plant closures, along with that of a marketing office, would lead to a net reduction of 88 jobs, a spokesman for ADM said. This would be the Chicago-based agribusiness giant’s second restructuring plan in France since it bought Neovia from French group InVivo for 1.54 billion euros ($1.81 billion) as part of an expansion in the animal nutrition sector.
The latest plan, presented to staff representatives this week, would cut overcapacity in ADM’s network of 10 animal feed plants in France and also invest 12 million euros to modernise remaining sites, the spokesman said. The proposed factory closures concern two sites in northwestern France, at Argentan and Languidic, that are part of the Sermix unit, the spokesman said.
Neovia had about 1,000 staff in France when ADM purchased it. Its 2019 redundancy plan led to 120 job cuts, mostly at Neovia’s former headquarters in Saint-Nolff, Brittany.
The company, which reported a 36% jump in fourth-quarter profit, had warned in 2019 that the takeover would lead to staff cuts. Neovia had a limited presence in North America but a large one in Europe, Southeast Asia, and Central and South America.
Source: Reuters