ADM in Keokuk closes permanently

Published: Aug. 26, 2022 at 11:35 AM CDT
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KEOKUK, Iowa. (WGEM) - ADM Milling announced Friday that the company will be closing its Keokuk plant permanently, according to City Administrator Cole S. O’Donnell.

O’Donnell reported the city does not know the number of employees affected by this decision.

According to O’Donnell, ADM has indicated that they are looking to sell the facility at some point in the future. The city has contacted Lee County Economic Development Group and will be working with that organization and the Iowa Economic Development Authority to find prospective buyers.

O’Donnell said since January of this year the city has been working with ADM to address issues related to the plant’s wastewater pretreatment. The pretreatment operation at the Keokuk plant experienced many upsets and failures that have resulted in loadings to the Keokuk wastewater treatment facility resulting in the city’s facility being in noncompliance of its discharge permit. The city believes that the cost of improving the pretreatment operation directly influenced ADM’s decision to close the plant.

O’Donnell said the closing of the plant could impact the city financially.

“Their pre-treatment facility was not operating correctly,” said O’Donnell. “Them not being in operation and being a significant user, that will impact our revenues and expenditures in the sewer department.”

When informed of ADM’s announcement, Mayor Kathie Mahoney issued this statement:

“We are all disappointed in ADM’s decision to close the Keokuk plant rather than invest the necessary capital to improve the facility and maintain operations. The city will be working with local and state officials to hopefully find a company to replace ADM.”

WGEM News has reached out to ADM for comment on the closure.

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