Archer Daniels Midland (ADM.N), a U.S.-based grain merchant, has announced the closure of a pet food facility in Brazil.

The announcement was made in response to inquiries from Reuters this week. The closure is part of the company’s ongoing efforts to optimize its operations and costs.

According to a press officer based in Sao Paulo, ADM informed the employees of the facility, which will continue to operate for an additional 90 days, of the decision on July 15.

“We have concluded that our Tres Corações (TCO) facility and associated businesses and assets are no longer in accordance with our future operational requirements,” the ADM statement stated, following an exhaustive examination of a diverse array of alternatives.

According to a source who is well-versed in the matter, the company attempted to sell the unit for approximately one year without success. The thwarted sale attempt, which was reported in the local press, was not addressed by ADM.

In February, ADM announced that it would eliminate hundreds of positions and reduce expenses by $500 million to $750 million over the next three to five years.

This announcement was made in response to the company’s lowest fourth-quarter adjusted profit in six years.

An accounting investigation was conducted in 2024 to examine ADM’s nutrition division, which was the smallest of three business entities.

The organization continues to be a significant agricultural trader and processor in South America, and it maintains facilities for the production of biodiesel and vegetable oil.

According to the company, the Tres Coracoes plant, which was acquired by ADM in 2019, had an annual production capacity of approximately 525,000 kilograms of pet food products and employed over 900 individuals.

ADM stated that it continues to operate a single animal nutrition products facility in the country, which is situated in the state of Sao Paulo.