USA – ADM is planning to realign its business for a second time in three years even as it battles falling grain margins, by forming new segments to enhance agility, drive innovation and align business operations.
The company has realigned its business into four units including Carbohydrate Solutions, Nutrition, Oilseeds and Origination.
with new formed with new leadership appointments that aims to an aim to further improve the customer experience.
According to the company, the new segments better reflect ADM’s operating structure and will enable the company to further highlight the differentiation of its product and service offerings and enhance its ability to respond to the evolving needs of customers.
“The changes we are announcing today enhance and accelerate our efforts to deliver value-added, differentiated products and services and drive growth across our entire portfolio,” said Juan Luciano, ADM Chairman and CEO.
“We have made tremendous progress over the last several years in creating a more agile and efficient company, and these changes position us to build on that momentum as we work to further enhance the customer experience and provide even greater value to customers and shareholders.”
The company says that leaders for each business unit have been appointed from its existing management team but with new roles.
Chris Cuddy will have an enhanced role as head of corn processing to lead the new carbohydrate solutions business unit, which will include the current corn and milling operations.
Vince Macciocchi will expand his leadership role as head of Nutrition to include the Animal Nutrition and Bioactives businesses in addition to Wild Flavors & Specialty Ingredients (WFSI).
Greg Morris will continue to lead the Oilseeds business unit, which has not been changed.
Stefano Rettore has been named senior vice president and president, Origination, which will include the current Agricultural Services business, excluding Milling.
He will also continue to serve as the company’s chief risk officer.
ADM says that its new business segments will be reflected in its financial results beginning with the first quarter of 2018, presented on May 1, 2018.
It also announced leadership changes to further accelerate its existing Readiness initiative to reduce costs, improve efficiency and standardize its business processes and systems to drive improved analytics and decision-making across the organization.
Joe Taets has been appointed to the newly created role of senior vice president and president, Global Business Readiness while Kristy Folkwein will be the senior vice president and chief information officer.
The new leaders will help accelerate ADM’s Readiness initiative to reduce costs, improve efficiency and standardize its business processes and systems to drive improved analytics and decision-making across the organization.
According to Reuters, major players in the grains industry are embarking on shaking up operations to boost their financial results.
COFCO International Ltd named new global heads for grains and oilseeds as part of a new management shakeup.
Global grain trader Bunge Ltd’s has also announced plans to restructure its business, a move that seems to be focused on compensating for weak earnings in the grain sector.
ADM last restructured its operating divisions in the first quarter of 2015, when it assembled the WFSI segment from its US$2.82 billion acquisition of Wild Flavors and other businesses.