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This just in… ADM seeking new global headquarters, tech center

Monday, Sep 23, 2013

* 1:40 pm - ADM is announcing that 100 top executives will be moved out of the company’s longtime Decatur home. Word from inside is that the company is considering moving those top jobs to Chicago.

* From a press release…

Archer Daniels Midland Company (NYSE: ADM) announced today that it is exploring establishing a new global headquarters and customer center.

“Our company is growing and becoming more global and more customer-centric,” said Patricia Woertz, ADM chairman and chief executive officer. “To continue to succeed, we need a global center in a location that allows us to travel and work efficiently with customers and employees throughout the world. We also need an environment where we can attract and retain employees with diverse skills, and where family members can find ample career opportunities.”

The company is considering locations and having discussions with various public officials and advisors. It does not expect to discuss those details publicly.

It expects to locate a small, corporate team at the global center, with approximately 100 jobs relocated to the center. In addition, the company plans to create a new IT tech center at the same location, adding approximately 100 new positions there over the next few years.

The company does not plan any layoffs in connection with the move to a new global center.

“As we look to establish the new global center, we remain firmly committed to the 4,400 colleagues who will continue to work in Decatur, and to the economic strength and viability of the Decatur community,” Woertz said.

In recognition of the breadth and importance of the work that will continue to be centered in Decatur, the company’s office there will be designated the North American headquarters. ADM also maintains regional headquarters in Rolle, Switzerland; São Paulo, Brazil; and Shanghai, China.

“To ensure that Decatur remains a strong and vibrant community for years to come, we are also announcing today several multi-year financial commitments. We are investing in Decatur’s economic development to help ensure it flourishes economically, in its schools to foster a strong workforce pipeline, and in critical social services to enhance the quality of community life.”

Among the specific commitments the company is making is $250,000 a year for three years to fund an enhanced public-private partnership and unified marketing campaign for the Economic Development Corporation of Decatur & Macon County, including the funding of a mayoral economic development fellow; and $500,000 a year for five years to Decatur Public School District 61. In addition, the company will maintain its other Decatur and Macon County community support at $1 million a year for at least 10 years.

“This is an exciting time for our company. We are preparing for a large North American harvest and the completion of our acquisition of GrainCorp,” Woertz said. “We look ahead to a strong 2014, as we position our company for continued success.”

ADM is also seeking “assistance from the State of Illinois through the Economic Development for a Growing Economy (EDGE) Tax Credit and other credits against other state taxes to help facilitate the relocation and creation of additional Illinois jobs.”

So, we may be in for a bidding war.

I doubt that Rep. Bill Mitchell will be all that pleased. You will recall that Mitchell (R-Forsyth) is a Decatur-area legislator who has demanded that Chicago secede from Illinois.

- Posted by Rich Miller        

66 Comments
  1. - Nonplussed - Monday, Sep 23, 13 @ 1:42 pm:

    I am sure the rest of the world would see it as Chicago seceding from Illinois.


  2. - Dirty Red - Monday, Sep 23, 13 @ 1:50 pm:

    This should just about break that city’s back.


  3. - walkinfool - Monday, Sep 23, 13 @ 1:52 pm:

    ADM has a fair number of professional staff already in the Chicago area. This makes it more permanent.

    World City Chicago really does mean something, as this can encourage others from around the world to locate here.


  4. - hisgirlfriday - Monday, Sep 23, 13 @ 1:59 pm:

    After the 800 cat jobs lost and tate and lyle moving to the burbs a few years back, wow that’s devastating.


  5. - Susiejones - Monday, Sep 23, 13 @ 2:00 pm:

    seems like a blow to Decatur. regardless of what ADM pledges to the community, this won’t play well with the people of that city, I imagine.


  6. - Joe from Joliet - Monday, Sep 23, 13 @ 2:01 pm:

    ===a location that allows us to travel===

    ADM is moving to Peotone!!!


  7. - Fed up - Monday, Sep 23, 13 @ 2:05 pm:

    Hope they stay in Illinois but this appears to be another huge corporation seeking welfare or threatening to leave.


  8. - Anon2 - Monday, Sep 23, 13 @ 2:08 pm:

    How about a high speed train from Decatur to O’Hare.

    I still doubt anyone is interested in going to St. Louis from Chicago in a hurry.


  9. - wordslinger - Monday, Sep 23, 13 @ 2:15 pm:

    The takeaway is the Big Dogs don’t want to live in Decatur anymore.

    The golf courses, restaurants and cultural attractions of Chicago beckon.

    Or maybe Dallas or Houston (the golf courses part, at least).

    Pop-a-Vic Rick is sitting on a multi-billion “business incentive” oil-financed slush fund down in Austin (funny, he’s always broke when it comes to schools, healthcare, hurricanes, tornadoes or neighborhood fertilizer factories that blowed up real good).

    Don’t worry — ADM knows they can shake down the State of Illinois to get whatever they want to relocate to the Loop, or Deerfield, or Northbrook, or Glenview or any other “nicer” place.

    The generations of Decatur folks who built the company and made the Big Dogs their fortunes….. well, if they want loyalty, they can buy dogs.


  10. - AlphaBettor - Monday, Sep 23, 13 @ 2:20 pm:

    I moved from Decatur to Chicago 18 years ago, and nobody made a big deal about it. It’s going to be much easier to attract executives to Chicago. Decatur has no cultural attractions whatsoever, unless you like going to a Pentecostal church on Wednesday nights.


  11. - Dan - Monday, Sep 23, 13 @ 2:23 pm:

    How long before CAT in Peoria makes the same decision?


  12. - RNUG - Monday, Sep 23, 13 @ 2:31 pm:

    For what it is worth, ADM has a long history of securing government subsidies (mostly federal) for their businesses. Unless things have changed, they are the largest producer of heavily subsidized ethanol, with plants all over the mid-west. They have been known to export a huge amount of grain tonnage to Russia, often subsidized with federal export assistance. ADM will keep production in Decatur … but upper management leaving will devastate what little remains of the high-end real estate market there.


  13. - Dirty Red - Monday, Sep 23, 13 @ 2:34 pm:

    = The generations of Decatur folks who built the company and made the Big Dogs their fortunes….. well, if they want loyalty, they can buy dogs. =

    I may have to frame that, Word.


  14. - GA Watcher - Monday, Sep 23, 13 @ 2:43 pm:

    It’s the corporate team and the IT center that will be relocating to the Chicago area. It will continue to employ 4,400 people at its Decatur operation.


  15. - Dirty Red - Monday, Sep 23, 13 @ 2:46 pm:

    = In recognition of the breadth and importance of the work that will continue to be centered in Decatur, the company’s office there will be designated the North American headquarters. ADM also maintains regional headquarters in Rolle, Switzerland; São Paulo, Brazil; and Shanghai, China. =

    From ADM’s Web site describing the Rolle facility: “The Rolle office employs more than 180 people who are responsible for trading and purchasing such crops as rapeseed, sunflower, palm and soy, as well as financing, marketing and commercial activities across the Company’s various business units.”

    Brazil: “Today, we have more than 4,000 employees in the country.”

    Emphasis on COUNTRY. They several processing plants there.

    The location in Shanghai is a suite of offices.

    How long will those traders stay in Decatur when there is an exchange in Chicago or even Peoria?


  16. - Grandson of Man - Monday, Sep 23, 13 @ 2:50 pm:

    “Or maybe Dallas or Houston”

    If that’s the case, then the kids might be taught Creationism as science. The Texas Board of Ed just had a serious debate about putting Creationism in textbooks. The Texas GOP also wanted to eliminate the teaching of critical thinking in its party platform last year.

    Texas again led the nation in most without health insurance (kids and adults), and has the most workers making below 138% of the FPL. This is supposed to be the great state of job creation.

    http://www.texastribune.org/2013/09/18/texas-maintains-highest-uninsured-rate-nation/


  17. - horse w/ no name - Monday, Sep 23, 13 @ 2:52 pm:

    First it was Firestone, then Illinois Power, now ADM. Decatur will start to resemble East St. Louis soon enough. Sad.


  18. - LincolnLounger - Monday, Sep 23, 13 @ 2:59 pm:

    Sadly, Decatur already resembles ESL, horse.

    This is a huge blow. Those top 100 executives are integral to the city’s leadership — boards, committees, philanthropy, etc.

    It’s great that they are going to invest in the schools, etc., but there’s no way to think this is anything other than Decatur’s life support getting unplugged.


  19. - mythoughtis - Monday, Sep 23, 13 @ 3:00 pm:

    The corporate team and the IT staff. That’s two entire office complexes. That means what’s left is the actual plants and operations. That means that the married corporate and IT staff have to decide whether to leave ADM, or have their spouse quit their job. There’s really no IT or corporate type job openings left in central IL because the departments keep getting moved or closed.
    That means uprooting kids from schools and non-custodial parents. All because of what?
    ADM has always been headquartered in Decatur. Has worked just fine for them all these years.


  20. - x ace - Monday, Sep 23, 13 @ 3:04 pm:

    Chicago will reduce travel time for the FBI interviews . Also , provides new , on location, backdrops for ” The Informant II”.


  21. - otoh - Monday, Sep 23, 13 @ 3:14 pm:

    CME and the CBOE are here, not Decatur. You can’t wine and dine market and futures makers from a couple hundred miles away.


  22. - Formerly Known As... - Monday, Sep 23, 13 @ 3:21 pm:

    From an article on this:

    O’Hare International Airport is a draw, the source said, adding, “It’s not easy to get to Shanghai from Decatur.”

    Makes sense.

    Will they incur any additional tax burden by moving to Chicago? If so, it may take some hefty subsidies to counter and balance out competing bids from large cities with lower tax rates and comparable infrastructure.


  23. - facts are stubborn things - Monday, Sep 23, 13 @ 3:25 pm:

    ADM has a large flight department based in Decatur, IL. With the top 100 executives moving, I am wondering if that flight operation will move all or in part to the new global headcourters? The aircraft allow ADM to meet with customers all over the world taking off and landing back at Decatur.


  24. - Judgment Day - Monday, Sep 23, 13 @ 3:26 pm:

    The real message in this isn’t for Decatur. The real message is that Illinois (specifically, Chicago) better win this one.

    This statement really stands out:
    “To continue to succeed, we need a global center in a location that allows us to travel and work efficiently with customers and employees throughout the world. We also need an environment where we can attract and retain employees with diverse skills, and where family members can find ample career opportunities.”

    If ADM World HQ goes elsewhere outside of Illinois, think about the message that sends to other corporations.

    Better win this one.


  25. - facts are stubborn things - Monday, Sep 23, 13 @ 3:28 pm:

    Will moving to say chicago allow ADM to rely less on their corperate aircraft? It is hard to see the top executives put up with airline travel while they go from say Chicago to Brazil to Africa to China and back to Chicago.


  26. - Anon - Monday, Sep 23, 13 @ 3:30 pm:

    Who in the heck would actually WANT to live in Chicago?


  27. - hisgirlfriday - Monday, Sep 23, 13 @ 3:32 pm:

    @Dan

    Cat is building a new HQ in Peoria. They’re not leaving. And while most places south of I-80 are probably all the same to those north of it, the prospect of attracting professionals to live/work in the Peoria area vs. Decatur area is many degrees easier.


  28. - RNUG - Monday, Sep 23, 13 @ 3:34 pm:

    There will be additional costs to be in greater Chicago. Obvious things like real estate or taxation. Less obvious items like IT salaries, which are a significant percentage higher because in Chicago you can change jobs without changing your parking garage or EL stop.


  29. - facts are stubborn things - Monday, Sep 23, 13 @ 3:35 pm:

    @Anon - Monday, Sep 23, 13 @ 3:30 pm

    = Who in the heck would actually WANT to live in Chicago? =

    Approx. 2.7 Million


  30. - facts are stubborn things - Monday, Sep 23, 13 @ 3:37 pm:

    Left off the word “people” 2.7 million people. I agree with you from my perspective Anon.


  31. - hisgirlfriday - Monday, Sep 23, 13 @ 3:40 pm:

    @Anon - What a dumb thing to say. Obviously MILLIONS of people want to live in or near Chicago And with good reason with the beautiful parks and lakefront, world class museums and cultural/sporting attractions, and breathtaking architecture.

    For some that is worth the expense, crime issues, and crowding. For others that’s not enough for them to leave their comfortable downstate cities or prairie farm towns. Yet both types of people are true Illinoisans worthy of acknowledgement and respect.


  32. - Anonymous - Monday, Sep 23, 13 @ 3:42 pm:

    “Who in the heck would actually WANT to live in Chicago?”

    Who in the heck would actually WANT to live in Decatur?

    “There will be additional costs to be in greater Chicago”

    There will also be greater benefits to being in greater Chicago.


  33. - hisgirlfriday - Monday, Sep 23, 13 @ 3:46 pm:

    Just curious if any of the pols who stirred up Cat’s empty threats over the tax increase to make hay or the economic warriors in the civic committee have commented on this. Will Ty Fahner be setting up meetings between ADM execs and Rick Perry to keep sticking it to Illinois citizens for not electing pols who are anti-worker enough a la his Moody’s treachery?


  34. - downstate demo - Monday, Sep 23, 13 @ 3:51 pm:

    ADM has done a lot for Decatur and Macon COunty.
    Hope this does not mean losing the training center and other operations they have through the city.
    Remember thanks to AE Staley saling his football team to HAlas for a One dollar Chicago got the Bears and a Decatur company got a mascot named after it.
    You wonder what will happen next to this struggling community.


  35. - Anonymous - Monday, Sep 23, 13 @ 3:53 pm:

    Smoke and Mirrors.

    Take the money from tax breaks and rename a portion of that money as a donation for this or that. oh are they not noble and generous.

    and in the process you shift the control over where public funds should be spent to a corporation. what do we have elected officials for — corporate puppets?


  36. - Anonymous - Monday, Sep 23, 13 @ 3:58 pm:

    Speaking of East St. Louis

    boeing is set for layoffs in st louis as it ends production of the c-17. so any trickle down in that community will be ending


  37. - wordslinger - Monday, Sep 23, 13 @ 4:00 pm:

    Boeing moved to Chicago because they wanted to get away from their workers.

    Their workers were troublesome, what with their interest in their own lives, working conditions, legal rights and ability to vote.

    So Boeing sent a couple thousand corporate and Pentagon fixer goofs to Chicago, and the state of Illinois spent millions to churn out a couple of press releases at the copier to set them up in the service of “jobs.”

    They live North Shore, they work next to the Northwestern station, they fly out of subsidized- Gary and they care oogats about the folks in Washington state and Calli — or Illinois — who made their fortunes.

    Enough. You don’t have to be a Bolshevik to see that working folks are getting the s-end-of-the-stick in 2013.


  38. - Joe from Joliet - Monday, Sep 23, 13 @ 4:00 pm:

    ===First it was Firestone, then Illinois Power, now ADM.===

    And before that General Electric and Borg Warner left town. In 1980, Decatur was only 5% smaller than Springfield. Now Decatur is 35% smaller.


  39. - Anonymous - Monday, Sep 23, 13 @ 4:02 pm:

    if the plan is to move where the companies families have ample career opportunities how can chicago be in the running with the second highest unemployment rate in the nation?


  40. - wordslinger - Monday, Sep 23, 13 @ 4:06 pm:

    –”Who in the heck would actually WANT to live in Chicago?”–

    Yeah, that’s exactly what we need. More input from the dependent ignorami.

    I guess you can’t figure out why anyone would want to live in New York, London or Tokyo, either?

    For crying out loud, I’m a farm boy, but you huckleberries wear me thin.

    Just cash your federal crop insurance/subsidy/price support welfare checks and leave us capitalists in the cities to figure out how to pay for them. You’ve been doing it for generations now.


  41. - wordslinger - Monday, Sep 23, 13 @ 4:10 pm:

    –if the plan is to move where the companies families have ample career opportunities how can chicago be in the running with the second highest unemployment rate in the nation?–

    Another Big Brain chimes in.

    Geez, I hope you go to church on Sunday. Because if someone as dumb as you can house, feed and clothe himself, God smiles upon you.


  42. - Darienite - Monday, Sep 23, 13 @ 4:21 pm:

    ==ADM has a large flight department based in Decatur, IL. With the top 100 executives moving, I am wondering if that flight operation will move all or in part to the new global headcourters? The aircraft allow ADM to meet with customers all over the world taking off and landing back at Decatur.==
    What about clients who need to visit ADM brass? Can the Decatur airport land commercial aircraft? If not, that may be the rationale behind the move. Plus in reading the press release, has ADM lost executives because of Decatur? Look we want all of Illinois to succeed, and if having a hundred suits plus techies makes ADM stay in Illinois, I’m good with that.


  43. - Soccermom - Monday, Sep 23, 13 @ 4:25 pm:

    I understand that Chicago will be competing against other cities. But gosh it irks me that ADM will be getting hefty tax breaks to strip 100 good jobs from a city that really needs them to locate within Illinois.


  44. - Soccermom - Monday, Sep 23, 13 @ 4:28 pm:

    btw, Anon 4:02 — the unemployment rate in Decatur was 13.2 percent in July, compared with 9.6 percent in the Chicago area. So yeah — a little easier for spouses to find jobs in Chicago.


  45. - cover - Monday, Sep 23, 13 @ 4:30 pm:

    = First it was Firestone, then Illinois Power, now ADM. Decatur will start to resemble East St. Louis soon enough. Sad. =

    It’s been heading that way for a long time. It won’t be long before the only people left in Decatur with money are retirees from those good-paying factory jobs of yesteryear. Once they’re gone, what’s left to sustain the city, other than ADM’s processing plants?


  46. - not me - Monday, Sep 23, 13 @ 4:37 pm:

    The groung Rep. Mitchell walks on just got a little shaky.

    The Speaker can really mess with him for the next few cycles.


  47. - Grandson of Man - Monday, Sep 23, 13 @ 4:49 pm:

    “Another Big Brain chimes in.”

    It’s hard sometimes to not respond to trolls. Your responses, however, are funny as heck–and true.


  48. - Cheswick - Monday, Sep 23, 13 @ 5:07 pm:

    I agree. This is an excellent thread. Thanks, wordslinger.


  49. - Quinn T. Sential - Monday, Sep 23, 13 @ 5:13 pm:

    As a shareholder I view a relocation anywhere within Illinois as a breach of fiduciary duty. Any short term EDGE program gains would be offset by the current and future costs associated with the budget imbalance,operating deficit, and unfunded pension liabilities.

    If they are indeed looking at moving; moving out completely could be the best option for shareholders


  50. - x ace - Monday, Sep 23, 13 @ 5:33 pm:

    First, the Bears , now ADM .


  51. - low level - Monday, Sep 23, 13 @ 5:56 pm:

    Yep, Chicago is in SUCH bad shape, as the Tribune constantly reminds us… that another business is considering a relocation. Massive hotel and condo investment.

    Yep - all those letters to the editor they publish of people “fleeing” Chicago because of (insert anti Chicago slam here) is totally inductive of larger trends.

    Once again, Tribune full of it.


  52. - Obamas Puppy - Monday, Sep 23, 13 @ 6:35 pm:

    Frankly I’m shocked they stayed there as long as they have, Decatur is a shell of its former self. Counting the minutes until the Trib blames this on the lack of pension reform-just watch…


  53. - one of the 35 - Monday, Sep 23, 13 @ 6:49 pm:

    ADM and DCEO will really have to cook the numbers to justify an EDGE grant.


  54. - Reader - Monday, Sep 23, 13 @ 8:35 pm:

    So how much longer will the IL state political leaders (currently all Dems) continue the huge tax giveaways to corporate fat cats that threaten to leave the state, then complain that tax revenues are two low and a tax increase is needed?


  55. - Michelle Flaherty - Monday, Sep 23, 13 @ 11:06 pm:

    Hey Quinn T. Sential, did you go to the stockholders meetings in the early, mid-90s to yell at Andreas about the federal investigation and the drop in stock prices?


  56. - Dirty Red - Tuesday, Sep 24, 13 @ 1:34 am:

    = ADM has a large flight department based in Decatur, IL. =

    That used to be true. ADM started selling off/relocating its fleet back in the late 90s - early 2000s. They haven’t had a hanger there in years. There’s nothing left at Decatur Airport.

    Houston is an interesting mention. That would be one heck of a port for ADM to make us of - especially if they plan to expand their South American operations. It could just be a bluff to get a governor vying for re-election to throw more money at them in order to out-duel a certain job poaching Texan.

    I wouldn’t bet that the processing plant is as safe has been suggested in this post either. There is some interest in leasing the plant, from what I hear. Plus, ADM has simply outgrown that old rail yard. Perhaps the mid-70s chemical explosion would have been a great excuse for Decatur, ADM and Staley to bring home some money to overhaul the old girl.


  57. - facts are stubborn things - Tuesday, Sep 24, 13 @ 8:03 am:

    @Dirty Red - Tuesday, Sep 24, 13 @ 1:34 am

    I believe you are thinking of Stailys flight department — they did as you discribed some years back. ADM still has a flight department in Decatur and they actualy took over the old Staily hangar.


  58. - Juvenal - Tuesday, Sep 24, 13 @ 8:03 am:

    Perhaps Illinois Republicans will begin to ponder “What are we doing wrong that Chicago is doing right?”

    Nah.


  59. - low level - Tuesday, Sep 24, 13 @ 8:23 am:

    What I thought would have been great is for a Dem from Chicago to co sponsor the secession bill. By all means. Bill. Secede. I’m tired of the constant anti chicago b.s.


  60. - Stones - Tuesday, Sep 24, 13 @ 8:33 am:

    My understanding is that ADM has not announced where they will be relocating their corporate offices too. All this talk about Chicago being the location is premature at this point.

    I feel sorry for the city of Decatur.


  61. - Roadiepig - Tuesday, Sep 24, 13 @ 8:49 am:

    My son is a mid level employee in ADM’s IT department. As of today his people have not been told if they will still be located in Decatur or if their positions will be relocated ( the press release said the IT dept at the new location will be staffed with 100 new jobs so he is hopeful). His divorce decree forbids him to move more than 50 miles from his ex or he looses custody rights for his young daughter. There are real life consequences when corporate big wigs get tired of small town life. And like another poster mentioned, IT jobs just aren’t open here in central Illinois . My son went to ADM after Tate and Lyle (Staleys to those out of this area) told him they were locating his job to Hoffman Estates a couple of years ago. What a sad mess this is for those who actually are effected by it.


  62. - Robo - Tuesday, Sep 24, 13 @ 9:22 am:

    You can’t fight the critical mass that Chicago enjoys when it comes to sports, cultural activities and better places to eat and drink. Couple that with better employment opportunities and ease of travel and Decatur stands no chance. No doubt ADM executives will muse on why it took them so long to leave Decatur as the fly over it.


  63. - Bobby Hill - Tuesday, Sep 24, 13 @ 9:29 am:

    Decatur public schools just had 1% sales tax passed and is re-doing all the schools. I guess that wasn’t the key to keeping these folks around.


  64. - Anonymous - Tuesday, Sep 24, 13 @ 9:30 am:

    “It hurts — it really does hurt. But you move forward,” City Council member Pat McDaniel said, adding that he understands the company’s decisions and had heard rumors for years that this day might come. “It’s tough to compete against large metropolitan communities like Chicago or New York. They can offer things that we can’t.”

    http://finance.yahoo.com/news/adm-looking-move-longtime-headquarters-190009003.html


  65. - The AntiObama - Tuesday, Sep 24, 13 @ 9:38 am:

    -Perhaps Illinois Republicans will begin to ponder “What are we doing wrong that Chicago is doing right?”-

    One only has to look at the body count each weekend to figure that out….


  66. - wordslinger - Tuesday, Sep 24, 13 @ 11:50 am:

    “Once I made you rich enough, rich enough to forget my name.”

    http://www.youtube.com/watch?v=Smddcs5n0H0


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