A soybean processing plant in Lancaster County will shut down production later this spring amid the U.S. trade war with China, which has slapped high import tariffs on the goods.
The town's mayor where the plant is located said it has left the community in shock.
"It's a major blow to us, it is really is," Town of Kershaw Mayor Mark Dorman told SC Public Radio.
Illinois-based Archer-Daniels-Midland, also known as ADM, said in a statement Thursday that the company has determined its Kershaw crush plant "no longer aligns with our future operational needs."
The statement, provided to SC Public Radio, does not explicitly blame the closure on tariffs. Per a spokesperson, ADM is instead now "focusing globally on strategic simplification and organic growth to ensure we're operating the right assets to meet customer needs, achieve our returns objectives, and be the most efficient operator of each part of the business."
Early in March, responding to U.S. tariffs, China announced additional tariffs of up to 15% on key U.S. imports, including soy. China is a major importer of U.S. grown soybeans.
Today, the U.S. has 145% tariffs on Chinese goods, and China has a reciprocal tariff of 135% on U.S. goods.
U.S. soybean farmers have asked the Trump administration to ease the tariff pain.
In an interview with NPR, American Soybean Association President Caleb Ragland, who is also a soybean farmer, said that the U.S. exports about 50% of all soybeans grown, and China bought 52% of U.S. exports last year.
"So if you see a soybean field, every fourth row of soybeans went to China last year," Ragland told NPR.
ADM did not say how many employees at its Kershaw plant will be affected by the closure.
The state Department of Commerce lists ADM's approximate employment of 11 to 50.
Mayor Dorman said plant management had told him 40 people would be impacted.
An ADM spokesperson said the company has informed colleagues of its decision to permanently end production. The company is offering financial severance to employees and support to help workers find other jobs, the spokesperson said.
"I think this community in Kershaw is in shock that this happened," Dorman said. "You got a lot of people upset."
He said the plant is a landmark in the small town.
The facility, he said, has been run by ADM for decades, and is about half-a-mile from the town's downtown and close to the former Springs Mills property.
"If you live here, it's been a part of Kershaw for that long," he said, adding the news is like a bomb being dropped on the community. "Of course people are upset about that."
Representatives of the departments of commerce and employment and workforce told SC Public Radio Thursday that neither agency had received any information yet about the company shutting down its plant production.
Reuters reported that in February ADM announced plans to cut up to 700 jobs — representing about 1.7% of its global workforce — and cut costs by $500 million to $700 million over the next three to five years.
On Monday, the same outlet reported that ADM had started to shut down its domestic trading operations in China and lay off staff as part of a global cost cut effort.
Dorman said ADM management notified him of the plant's closure early Tuesday.
He said in conversations with ADM the word "tariff" never came up, but noted that the plant is an older plant that might have been costly to up fit.
Yet, up until early this week, Dorman said trucks hauling soybeans would come and go.
"I feel for the farmers," he said.
This story may be updated.
The Associated Press contributed to this report.
ADM's full statement:
ADM is always assessing its portfolio as part of its commitment to capital discipline. Right now, we’re focusing globally on strategic simplification and organic growth to ensure we’re operating the right assets to meet customer needs, achieve our returns objectives, and be the most efficient operator of each part of the business.
Within our Ag Services & Oilseeds business, we’re taking a strategic approach to optimizing our network. This involves identifying opportunities for investments to upgrade and modernize our footprint, as well as difficult decisions about possible options for consolidation. As part of the process, after exploring a wide variety of alternatives, we’ve determined that our Kershaw crush plant no longer aligns with our future operational needs. We’ve informed colleagues of our intention to permanently end production there later this spring.
Right now, we’re focused on our colleagues in Kershaw. We have a team onsite working with impacted colleagues. For those who do leave the company, there will be appropriate financial severance and we’ll be offering support to help them find other employment.
We’ll also be working with our customers to ensure a smooth transition.
