ADM Plans $196 Million Expansion in Clinton, IA

The Archer-Daniels-Midland (ADM) grain processing plant in Clinton will undergo a $196 million modernization and expansion project to increase manufacturing capacity and help the century-old facility remain competitive.

The Chicago-based ADM is planning to update its Clinton wet mill, a facility built in the early 1900s that ADM acquired in 1982, according to documents from the Iowa Economic Development Authority, which approved incentives for the project Friday.

The project will include an investment of $146.5 million in new machinery and equipment as well as a new $39.1 million building expansion. It also includes $2.8 million in site preparation and $7.8 million in other machinery and equipment.

The economic development authority’s board approved $8.257 million in tax credits from its High Quality Jobs program. The project is expected to retain 42 jobs at a qualifying wage of $15.99 per hour.

“ADM is a proud member of the Clinton community, with operations spanning corn processing, grain origination and storage, and river transportation,” ADM spokeswoman Jackie Anderson said. “We are solidifying our presence in Clinton by investing to rebuild our 100-year-old Clinton wet mill.”

She said the mill is part of a corn processing complex that produces a wide range of products, including corn sweeteners and starches, beverage alcohol, corn oil, enzymes, ethanol, animal feed and other food ingredients.

The state assistance includes $7 million in an investment tax credit and $1.257 million in a sales, service and use tax refund.

State documents show ADM had considered closing the plant about 18 years ago because of its physical age and modernization needs. “The corn wet milling process begins at the mill as it separates the corn kernel into its four individual components. Without the mill, none of the other operating departments can operate,” the documents say.

“We appreciate the support of the State of Iowa and the City of Clinton, and we look forward to calling Clinton home of our newest, most modern corn wet mill,” Anderson said.

The plant employs more than 750 people, she added.

The city of Clinton has agreed to match the state award with a tax abatement, but the amount has not been determined.

Andy Sokolovich, the Clinton Regional Development Corp.’s existing industry manager, said the organization is “excited to support ADM” and thankful for the state’s partnership. “A wet-mill is the heart of their production process. As one of our largest employers, we are excited to share in their continued success,” he said.

Work on the modernization project is expected to begin in the first quarter of 2018 and be completed in the first quarter of 2022.

In a statement, Iowa Sen. Rita Hart, D-Wheatland, praised the investment by ADM. “This is good news for Clinton. ADM has been in Clinton since 1982. Modernizing and automating the Clinton facility will help the company remain competitive and, hopefully, add more good jobs down the road.”

Since 2003, ADM has received a total of about $19 million in state incentives for its operations in Clinton and Cedar Rapids. The projects created created a total of 181 jobs.

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