ADM restructures business to improve efficiency
entire business operations, in a move the company says will help it
to enhance its efficiency and pave the path for long-term success.
Announced today, the reorganization will create a single operations group, responsible for the company's origination, merchandising, processing and marketing functions.
"The reorganization represents the next step in our process to position ADM for continued success.
We have defined our longer-term strategy and areas of focus; now we are aligning our organization and leadership to execute our business plans," said chief executive officer and president Patricia Woertz in a statement.
According to ADM, the reorganization is expected to streamline operations for improved performance, as well as provide development opportunities for managers in the company.
This will help ADM retain "top talent", said Woertz.
Amongst the changes effective today, a new Commercial & Production division will be headed up by John Rice, executive vice president, who will be responsible for global origination, merchandising, processing and marketing across ADM's major business lines.
In addition, David Smith, executive vice president, secretary and general counsel, will take on additional responsibility for Natural Health and Nutrition, Aviation and Internal Audit, said the firm.
Steve Mills, senior vice president, Strategic Planning, will assume additional responsibility for Specialty Food Ingredients, ADM Investor Services and Hickory Point Bank.
The firm also implemented a reporting structure designed to support its business strategy.
The reorganization comes less than a year after the firm announced a global growth strategy designed to boost its position in agricultural processing.
ADM said the new program is an attempt to "capitalize on the exceptional opportunity ahead" , as global demand increases for both food and fuel.
"We are implementing a strategic program that will drive both long- term growth and returns by capitalizing on our global strengths and the changing dynamics of the global energy and food markets," Woertz said in November.
"We see our company distinguished by five global core strengths: our origination, storage and transportation operations across the supply chain; our global agricultural processing footprint; our diversified product portfolio; our experienced management team; and our financial strength to manage for returns and growth through business cycles," she added.
The firm identified three strategic areas that it said offer the highest potential for significant, value-added growth: expansion of the geographic scope of its core model, diversification of its feedstocks and growth of its BioEnergy business.
Key to the growth drive will be technology and innovation.
Last month, ADM reported that operating profit for the year ended 30 June increased by 53 per cent to $3.16bn, mainly due to streamlining operations designed to allow the firm to focus on its core areas of expertise.
