ADM to end production of corn-based plastic in Clinton

Archer Daniels Midland Co. plans to end production of corn-based plastics at its Clinton corn processing complex for a joint business venture.

ADM has been producing the product, Mirel, at the plant on behalf of Telles LLC, a sales and marketing commercial alliance between ADM and Metabolix Inc. Decatur, Ill.-based ADM announced Thursday, Jan. 12, that it is ending the commercial alliance with Metabolix and they will dissolve Telles.

Telles produces plastics from corn sugar that can biodegrade naturally in soil, water or composting systems. The material was approved by the FDA for use in plastic utensils and lids.

In a statement, Mark Bemis, ADM president, corn, said the decision followed a review to identify areas of ADM's businesses not currently or projected to produce sufficient returns.

“We have had a good working relationship with Metabolix, and the fermentation technology performed well at our facility," Bemis said.

Bemis cited uncertainty around projected capital and production costs, combined with the rate of market adoption for Mirel.

About 90 ADM Polymers employees work at the ADM Clinton facility.

ADM said it is still evaluating the impact of the decision on the plant's staffing needs. It plans to offer severance benefits, including outplacement services, to those affected. In addition, the company said there may be opportunities for some affected employees to apply for other positions at ADM's facilities.

ADM will record a one-time pretax charge $300 million to $360 million, primarily for impairment of the related production assets, as a result of the move in its second fiscal quarter.

The announcement came after ADM announced plans Wednesday to eliminate 1,000 jobs.

.