After extensive analysis, the agri-business giant
Archer Daniels Midland Company
) chose Chicago for its new global headquarters and customer
center, moving from its present day location at Decatur, Ill.
However, the company is yet to finalize a suitable site for its
headquarters in the city.
ARCHER DANIELS (ADM): Free Stock Analysis
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Archer Daniels believes Chicago is strategically positioned to
provide easy access to the worldwide markets besides facilitating
the company to enhance its relationship with the U.S. farmers,
consumers as well as operations. Additionally, the city provides
ample scope to enlarge its workforce with the availability of
enormous professional expertise.
As part of the relocation, the company has decided to move a
corporate team of 50 - 75 employees to its Chicago headquarters,
against its initial plan of moving 100 high profile jobs to the
Further, the company has withdrawn its plan of building an
information technology (IT) center at its new headquarters and is
now on the lookout for a new site to establish the IT and support
center. The new IT center is expected to generate an additional
employment for 100 people. While the company is evaluating
locations in various states, it expects to narrow down on an
appropriate site by mid-2014.
However, the company plans to retain Decatur as its North
American headquarters. The workforce of 4400 at Decatur remains
in place and the company has not planned any layoffs.
Archer Daniels' endeavor to constantly expand its footprint and
enhance customer services led to the decision of establishing a
new global center that will allow it to work more competently
with customers and employees across the globe. Further, the lack
of several modern facilities including a big airport compelled
Archer Daniels to move out of its longtime headquarter in
Decatur, which is comparatively a smaller city with limited
We believe this Zacks Rank #3 (Hold) company's decision to
relocate is a strategic fit for its expansion plans. Moving the
global headquarters to a bigger city with modern facilities with
help the company to regulate its operations more effectively and
consequently bolster its performance. Archer Daniels is a major
agricultural processor that competes with
The Andersons Inc.