ADM to Relocate Global Headquarters - Analyst Blog
September 24 2013 - 5:05PM
Zacks
Recently, food processing giant Archer Daniels Midland
Company (ADM) declared the relocation of its global
headquarters from Decatur, IL. However, Decatur will remain the
company’s North American headquarters.
Archer Daniels is at present negotiating with several public
officials and advisers for a new location. Though the company has
not revealed any details, the city officials of Chicago have
revealed that the city has been shortlisted as a possible
location.
Archer Daniels is constantly seeking to expand its footprint and
enhance customer services. Due to these, the company needs a more
prominent location that will allow it to work more competently with
customers and employees across the globe. Notably, Archer Daniels
is a major agricultural processor that competes with Bunge
Ltd (BG), Limoneira Co. (LMNR) and
The Andersons, Inc. (ANDE).
Further, the lack of several modern facilities including a big
airport has forced Archer Daniels to move out of its longtime
headquarter in Decatur. Moreover, Decatur is a comparatively
smaller city with a limited skilled workforce.
With the relocation, the company will transfer 100 high profile
jobs and simultaneously build an information technology center at
its new headquarter that will generate an additional employment for
100 people. The workforce of 4400 at Decatur will continue; the
company has not planned any layoffs.
We believe that Archer Daniels decision to relocate is a strategic
fit in its expansion plan. Moving the global headquarters to a
bigger city with modern facilities with help the company to
regulate its operations more effectively and consequently, bolster
the performance.
Currently, Archer Daniels carries a Zacks Rank #3 (Hold).
ARCHER DANIELS (ADM): Free Stock Analysis Report
ANDERSONS INC (ANDE): Free Stock Analysis Report
BUNGE LTD (BG): Free Stock Analysis Report
LIMONEIRA CO (LMNR): Free Stock Analysis Report
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