Archer Daniels Midland Co - ADM STOCK NEWS

ADM and LG Chem have signed a memorandum of understanding to explore the production of lactic acid in the US, aiming to meet rising demand for plant-based products, including bioplastics.

The joint venture is expected to begin in early 2022, producing high-purity, corn-based lactic acid. The global lactic acid market was valued at USD 2.7 billion in 2020, with an 8% annual growth rate anticipated. Additionally, the companies plan another joint venture to use this lactic acid for producing biodegradable polylactic acid, supporting a projected bioplastics market growth from USD 10.7 billion in 2021 to USD 29.7 billion by 2026.

ADM will present at the J.P. Morgan 12th Annual U.S. All Stars Conference on September 21. Chairman and CEO Juan Luciano is set to participate in a fireside chat at 8 a.m. Central Time. The event will be broadcast live via webcast, with a replay available afterward. ADM is a global leader in nutrition, committed to sustainability and innovation in food and agriculture. The company aims to address nutrition challenges worldwide.

ADM has successfully completed the issuance of $750 million in 2.700% notes due 2051. The funds will primarily be allocated to redeem $500 million of existing 2.750% notes due March 27, 2025. Remaining proceeds will support general corporate purposes, including commercial paper repayments. As of June 30, 2021, ADM reported $0.9 billion in cash and equivalents, $7.5 billion in marketable inventories, and $8.6 billion in available credit capacity. This announcement does not constitute an offer to sell securities.

ADM has announced a strategic acquisition of a 75% stake in P4 Companies, which includes PetDine, Pedigree Ovens, The Pound Bakery, and NutraDine. Valued at approximately $600 million, this investment aims to strengthen ADM's position in the growing pet nutrition market, projected to reach $140 billion by 2026. The acquisition includes state-of-the-art production facilities in Illinois and Colorado, enhancing ADM's capabilities in producing high-quality pet treats and supplements.

ADM's U.S. flour milling network has achieved net carbon neutral status, a milestone that is the first of its kind in the industry. With 22 mills across the U.S. processing wheat, sorghum, and corn, ADM utilized energy efficiency measures, renewable energy certificates, and carbon capture technology to reach this goal. This achievement aligns with growing consumer demand for sustainable goods, as evidenced by a Euromonitor survey indicating strong public concern over climate change. ADM aims to further reduce greenhouse gas emissions by 25% and energy intensity by 15% by 2035.

ADM will host the first-ever UN Food Systems Summit Independent Dialogue, titled Innovating Today for the Food System of Tomorrow, on Wednesday, Sept. 1, at 9 a.m. Eastern Time. The event aims to unite stakeholders from across the food and agriculture supply chain to discuss food security, sustainable development, and climate change solutions. Key speakers include Iowa farmers, agronomists, and representatives from PepsiCo and ADM. Registration for this online event is available here.

ADM will participate in the Barclays Global Consumer Staples Conference on Thursday, Sept. 9, 2023. Key executives, including Leticia Goncalves and Vikram Luthar, will engage in a fireside chat at 12:20 p.m. Central Time. The presentation will be available via a live webcast on www.adm.com/webcast, with a replay accessible for a limited time. ADM is recognized for its innovative approaches to nutrition and its leadership in human and animal nutrition globally.

ADM reports a significant consumer shift towards health and wellness, with 60% of global consumers planning to enhance their health in the next year. This trend, influenced by the COVID-19 pandemic, emphasizes preventative health behaviors. Key insights include a renewed focus on wellness, a holistic mind-body approach, tailored nutrition, proactive immunity measures, and purposeful indulgence. As these behavioral changes are expected to persist post-pandemic, ADM aims to support food and beverage companies in creating innovative, health-forward products.

Marathon Petroleum Corp. (MPC) and ADM have formed a joint venture to produce soybean oil aimed at meeting the rising demand for renewable diesel fuel. ADM will hold a 75% stake in the venture, which will operate a soybean processing facility in Spiritwood, North Dakota. Expected to be operational by 2023, the facility will process local soybeans into refined soybean oil, producing around 600 million pounds annually, sufficient for approximately 75 million gallons of renewable diesel. The complex represents a $350 million investment and will create about 75 permanent jobs.