Recently, food processing giant
Archer Daniels Midland Company
) declared the relocation of its global headquarters from
Decatur, IL. However, Decatur will remain the company's North
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Archer Daniels is at present negotiating with several public
officials and advisers for a new location. Though the company has
not revealed any details, the city officials of Chicago have
revealed that the city has been shortlisted as a possible
Archer Daniels is constantly seeking to expand its footprint and
enhance customer services. Due to these, the company needs a more
prominent location that will allow it to work more competently
with customers and employees across the globe. Notably, Archer
Daniels is a major agricultural processor that competes with
The Andersons, Inc
Further, the lack of several modern facilities including a big
airport has forced Archer Daniels to move out of its longtime
headquarter in Decatur. Moreover, Decatur is a comparatively
smaller city with a limited skilled workforce.
With the relocation, the company will transfer 100 high profile
jobs and simultaneously build an information technology center at
its new headquarter that will generate an additional employment
for 100 people. The workforce of 4400 at Decatur will continue;
the company has not planned any layoffs.
We believe that Archer Daniels decision to relocate is a
strategic fit in its expansion plan. Moving the global
headquarters to a bigger city with modern facilities with help
the company to regulate its operations more effectively and
consequently, bolster the performance.
Currently, Archer Daniels carries a Zacks Rank #3 (Hold).