Additional work at the Cedar Rapids facility over the next several years could bring the total investment to $60m.
Meanwhile, reflecting industry overcapacity in soymeal production, Cargill will optimise its soybean crushing operations in Iowa by closing its Des Moines crush plant in February.
Mark Stonacek, president of Cargill Grain and Oilseed Supply Chain North America in Minneapolis, said: “Iowa is core to Cargill’s soybean crushing strategy. We remain committed to serving Iowa farmers and our soy product customers, which we can do more competitively through our Iowa locations in Sioux City, Iowa Falls, and our two plants in Cedar Rapids. The decision to close the crush plant in Des Moines was a difficult one due to the long history and loyal employees at this facility.”
Declining domestic meat consumption, substitution of competing proteins such as dried distillers grain in feed, and growth in international oilseed processing have created a difficult industry environment for soymeal, Stonacek said.
Cargill will continue some business activities at the Des Moines site. Cargill will still purchase soybeans at its Des Moines elevator. Cargill will also continue to operate its vegetable oil refinery and produce specialty feed products at the Des Moines facility.
Source: Cargill
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