Animal Nutrition

ADM set to close two animal nutrition factories in France

The move is part of its restructuring following the acquisition of Neovia in 2019 for US$1.81bn.

The planned facility closures, along with a marketing office, could likely lead to the loss of 88 jobs, said a spokesperson.

She told us that, on March 24, the company presented an industrial and commercial reorganization project for its animal nutrition activities in France to employee representatives of its different entities in that country.

“The aim of this project is to adapt to the current animal nutrition market in France, which has gone through changes in the past few years and is becoming increasingly competitive,”​ she said.

More specifically, ADM said the project will address two challenges:

  • at the industrial level, an issue of overcapacity in certain production lines
  • at the commercial level, an organization that is too complex for our clients.

“Several measures have been put in place since 2019 to begin addressing these challenges, but ADM must now implement a more ambitious plan to safeguard the competitiveness of its animal nutrition business in France,”​ said the spokesperson. 

In concrete terms, the proposed reorganization would consist of two main pillars:

  • the modernization, specialization and rationalization of the industrial footprint, with €12m of investments to revamp and specialize several sites, but also with the potential closure of two of the 10 production sites: Sermix Argentan in the Orne department and Sermix Languidic in the Morbihan department.
  • the overhaul of the commercial approach, with a restructuring of the internal sales organization based and a new geographical organization to better cover the French territory, that could lead to headcount reduction and the closure of the commercial office in Saint-Grégoire, in the Ille-et-Vilaine department.