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ADM to reorganize its animal nutrition business in France

Wednesday, March 31, 2021

The management of ADM Animal Nutrition presented an industrial and commercial reorganization project for its animal nutrition activities in France to employee representatives of its different entities in France, a spokesperson of ADM Animal Nutrition in France told Aquafeed.com.

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. More specifically, this 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," the spokesperson said. The proposed reorganization would consist of two main pillars:

  • The modernization, specialization and rationalization of the industrial footprint, with €12 million of investments to modernize and specialize several sites, but also with the potential closure of two of the ten 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 and a new geographical organization to better cover the French territory, that could lead to a potential headcount reduction and the potential closure of the commercial office in Saint-Grégoire (in the Ille-et-Vilaine department).

Overall, this reorganization project could lead to 88 jobs being affected in the industrial and commercial departments, spread across several entities of ADM in France, especially its entity called Sermix.

The proposed reorganization will not affect the production capacity of ADM Premix. The reorganization project would be accompanied by an ambitious development strategy in France and Europe, relying on existing expertise, the spokesperson said.

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