Reuters — Cargill Inc. will close a corn mill in Memphis, Tenn., in January of next year, a move that will impact 440 employees, a company spokeswoman said.
“The closure of the facility results primarily from the underutilization of the Memphis facility and its higher cost position,” spokeswoman Nicole Marlor said in a release, adding that a corn oil refinery at the location will continue to operate.
The company on Tuesday also noted the milling facility’s location “away from the corn belt.”
The mill employs 440 people, of which 120 are contract employees. The employees will be offered opportunities at other Cargill locations in the region, she said.
The decision to close the plant “was made only after a careful examination of the current business situation and we examined all other possible options,” Julian Chase, president of Cargill Corn Milling in Minneapolis, said in Tuesday’s release.
The announcement comes two months after Cargill said it will build a grain handling facility in nearby West Memphis, Arkansas.
— Reporting for Reuters by Michael Hirtzer in Chicago. Includes files from AGCanada.com Network staff.