(Reuters) -Grain trader Archer-Daniels-Midland said on Friday it plans to cease operations at its plant in Bushnell, Illinois, as part of its plan to streamline its soy protein production network.
The Chicago-based company said its recently recommissioned flagship facility in Decatur, Illinois, is expected to improve operating profit over time.
ADM has been cutting jobs and downsizing certain operations since announcing in February that it planned to reduce costs by $500 million to $700 million over
three to five years.
The grain trader has been reeling from an accounting scandal last year that sent its stock price tumbling. It is also facing stiff headwinds amid rising trade tensions between the U.S. and its key markets, including top soybean importer China.
The company said in April it would permanently close a soybean processing plant in Kershaw, South Carolina, to cut costs.
The Kershaw plant was the first U.S. soybean processing plant to close, following a multi-year, industry-wide expansion amid soaring vegetable oil demand from biofuels makers, industry sources had told Reuters.
However, the biofuel sector has been rolling back production due to the uncertainty around U.S. biofuels policy and the potential for a worsening trade war.
ADM did not immediately respond to Reuters' request for comment on the number of employees who will be affected by the closure of the Bushnell plant.
(Reporting by Vallari Srivastava and Sumit Saha in Bengaluru; Editing by Shreya Biswas)
