August 19, 2004

Cargill To Idle Corn Processing Plant In US Texas
 

Cargill Inc. plans to idle its corn processing facility in Dimmitt, Texas, US, citing poor returns in the high fructose corn syrup business.

In a press release Tuesday, the international food producer said employment at the site will be "significantly" reduced by the elimination of contract workers.

The 90 Cargill employees at the facility will continue to serve local customers using existing inventory and product shipped in from other facilities, or will be assigned to maintenance projects and other duties within the company's system.

The company plans to re-evaluate the situation as market conditions evolve.

The poor returns make it less efficient for Cargill to operate its six high fructose corn syrup businesses in the U.S, the company said.

The company's other high fructose corn syrup businesses in the U.S. are in Blair, Neb., Eddyville, Iowa, Memphis, Tenn., Decatur, Ala. and Wahpeton, N.D.

A Cargill spokesman said that it is too early to speculate on any effect to the company's earnings due to the idling of the facility.

The spokesman said that 40 contract workers would likely be eliminated as part of the move.