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ADM Halts Work at 2 Corn Dry Mills Amid COVID-19 Crisis
April 27, 2020
4 Min Read
ADM is halting operations at several of its corn dry mill plants because of weak demand for gasoline during the COVID-19 crisis. Image courtesy of ADM
Citing a “challenging operating environment” created by the COVID-19 pandemic, American agribusiness Archer Daniels Midland (ADM) is temporarily halting production at its corn dry mill plants in Cedar Rapids, IA and Columbus, NE and furloughing 90 workers at the sites.
The reduction in ethanol grind will enable the firm to divert processed corn to production of other in-demand products like alcohol used in hand sanitizer.
“These are very difficult decisions in a very challenging time, and unfortunately, the current market conditions and the low consumer demand for gasoline at this time have greatly impacted the entire ethanol industry,” ADM Carbohydrate Solutions President Chris Cuddy said in a company release. “Our primary focus is the respect and care of our employees during this time, and we are doing everything we can to support them until market conditions improve and we can look at ways to restart production.”
ADM is also making changes to the ethanol grind at its corn wet mill facilities to allow the sites to produce industrial alcohol for sanitizers and industrial starches used in containerboard products.
After workers at the plants are furloughed over the coming weeks, ADM will continue to provide medical benefits to impacted staff and alert employees to other open positions within the company.
The shutdown of the sites is expected to last for four months, but the company said the reopening of the plants could be delayed by market conditions.
Earlier this month, Powder & Bulk Solids reported that four workers tested positive for COVID-19 at ADM’s Clinton, IA corn processing plant.
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