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Archer-Daniels-Midland (ADM) is set to permanently shutter its soybean processing facility in Kershaw, South Carolina later this spring, as part of a broader strategy to streamline operations and reduce costs, according to Reuters.

The decision follows ADM’s earlier announcement outlining plans to cut $500 million in costs over the next five years. As part of this restructuring, the company has been scaling back certain operations and reducing its workforce. In March, ADM also implemented job cuts within its largest division: grain trading and oilseed processing.

More recently, the business moved to shut down its domestic trading operations in China, a step that triggered further layoffs across its two largest business units: Ag Services and Oilseeds.

"After exploring a wide variety of alternatives, we've determined that our Kershaw crush plant no longer aligns with our future operational needs," ADM spokesperson Dane Lisser told Reuters.

The Kershaw site is the smallest of ADM’s more than a dozen US soybean plants. Its closure marks the first US shutdown of a soy processing plant after years of sector-wide expansion driven by rising demand for vegetable oil in the biofuels market.

However, recent uncertainty around US biofuels policy and escalating trade tensions—particularly with China, a key buyer of American soybeans—have weighed heavily on the sector, prompting a slowdown in biofuel production and demand.

ADM has committed to supporting affected Kershaw employees, offering financial severance and job placement assistance. The company has not disclosed how many workers are impacted.