Cargill has secured a deal to acquire two animal feed mills from the bankrupt Pennfield Corporation in the US for US$9.8m.
Cargill said today (18 January) that the deal for the mills, located in Mount Joy and Martinsburg in Pennsylvania, follows a court-led auction and should be complete by 21 January. Pennfield filed for Chapter 11 bankruptcy in the US last October.
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“The deal not only expands our footprint in the region but it also provides us with additional capabilities and opportunities to serve new customer segments and enhance our offerings,” said Cargill’s Northeast group director, Rob Sheffer.
News of the deal comes only a day after Cargill said it would mothball its beef processing plant in Plainview, Texas, from 1 February. Up to 2,000 jobs at the plant could be affected and workers will receive company support, Cargill said yesterday.
Cargill’s beef business president, John Keating, said the decision was not taken lightly, but he added: “Given the over-capacity that exists with four major beef plants in the Texas Panhandle and a dwindling supply of cattle in the region, idling Plainview will allow Cargill to operate its other beef plants in Texas, Colorado and Kansas more consistently on a five-day-per-week basis.”
He said that Cargill’s long-term commitment to beef processing is “unwavering”.
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