April 4, 2001

ADM Suspending Operations

DECATUR, Ill. (CP) - More evidence of economic damage caused by Alberta's high energy prices surfaced Thursday as Archer Daniels Midland Co. announced it is suspending its canola crushing and refining operations at Lloydminster.

The plant will close for an indefinite period on April 1, the U.S.-based international food giant said in a one-paragraph news release. The dormancy is made necessary due to very poor operating margins and an extraordinary increase in energy costs with recent deregulation of energy markets in the province," ADM said.

In an interview, company spokesman Larry Cunningham called the energy issue a minor factor in comparison with a glut in the world's vegetable oil market, particularly in the Americas.

Cunningham told CKSA Radio that operations will shut down for two to three months, but no immediate layoffs are planned while employees handle maintenance work.

Archer Daniels Midland is one of the world's largest processors of oilseeds, corn, wheat and cocoa, with over 23,000 employees worldwide, 368 processing plants and net sales for the fiscal year ended last June 30 of $18.6 billion US.

The Lloydminster plant was acquired from United Oil Seeds by subsidiary ADM Agra Industries in 1991. Employment numbers were not immediately available.

copyright 2001 Canadian Press