ADM plans to close two animal feed plants in France

PARIS (Reuters) – Archer Daniels Midland said on Friday that it plans to close two…

PARIS (Reuters) – Archer Daniels Midland said on Friday that it plans to close two production plants at its animal nutrition division in France as it continues to reorganise the business after the takeover of Neovia in 2019.

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 nutrition 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{c93c05115eae7b2853c4a44517667f24b04dafe21463d3cb653b86ff5269b0fa} 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.

($1 = 0.8488 euros)

Reporting by Sybille de La Hamaide, writing by Gus Trompiz, editing by Louise Heavens