ADM searching for new global headquarters

chaifetz10 · PostSep 23, 2013#12013-09-23T19:16+00:00

DECATUR — Archer Daniels Midland Co. announced Monday it is exploring the establishment of a new global headquarters and customer center outside of Decatur.

ADM said it is not planning any layoffs in connection with the move to a new global center, but it expects to locate a small, corporate team at the global center with approximately 100 jobs relocated to the center.

The company is considering various locations for a global headquarters and does not expect to discuss those options 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.

St. Louis would make a logical choice due to the proximity to Decatur and connections to other major corporations such as Monsanto...but I think Chicago may be the end location. I know the article says 100, but from what I'm hearing in Central IL they expect this to be more of a first wave with whatever office growing in the future. Would look fantastic as part of BPV if they are willing to invest, as filler for some of our empty downtown buildings, or even as part of Cortex.

Mods: I know this probably deserves to be within the Downstate IL section, but let's be honest...no one really checks that section out. Feel free to move it where you want though! I wasn't sure if this would be good for the general discussion, downtown (BPV? empty skyscrapers?), or even central corridor (Cortex?)

dredger · PostSep 23, 2013#22013-09-23T19:45+00:00

In a way, kinda of like In-Bev opening up a corporate/globab office in NY and downgrading St. Louis to NA headquarters while keeping much of its St. Louis staff in place after the reduction for cost savings. At end of day, Chicago seems like the most logical location the ADM execs want to end up at but I'm sure Texas is all over this touting Houston and Dallas with the respective United and AA hubs.

sirshankalot · PostSep 23, 2013#32013-09-23T19:49+00:00

Chaifetz, kudos to you for posting this kind of info...no rumors, no innuendo, just breaking news that is very pertinent to our area. in the end, it would be a mountain-moving deal to get them to STL, and yes, you would have to give away land at BPV to even get a seat at the table.

quincunx · PostSep 23, 2013#42013-09-23T19:54+00:00

I hope there's the sound of car doors slamming and wheels screeching outside the offices of the Regional Chamber and St Louis Economic Development Partnership.

sirshankalot · PostSep 23, 2013#52013-09-23T19:59+00:00

Quincunx: I couldn't disagree with you more. After reading the Trib article, they are going to Chicago. Don't even get in a financial-package competition with other cities. Send them a letter touting the life-sciences assets and resources in the STL area and move along...

P.S. they want to be in a city with a direct flight to Shanghai and we don't have one to Hawaii.

chaifetz10 · PostSep 23, 2013#62013-09-23T20:02+00:00

^I don't think Chicago is set in stone. If that was the case they would have waited to announce the direct move. If anything, they have a list of a dozen or two cities and they are now trying to guage interest on who wants to offer the best sweetheart deal.

sirshankalot · PostSep 23, 2013#72013-09-23T20:03+00:00

^They will let all the wanna-be's bid, show the best bid to Chicago and have them match it...game, set ,match

STL should walk away.

chaifetz10 · PostSep 23, 2013#82013-09-23T20:06+00:00

So similar process to what Tate and Lyle did a few years back. This scenario does seem similar.

quincunx · PostSep 23, 2013#92013-09-23T20:20+00:00

sirshankalot wrote:Quincunx: I couldn't disagree with you more. After reading the Trib article, they are going to Chicago. Don't even get in a financial-package competition with other cities. Send them a letter touting the life-sciences assets and resources in the STL area and move along...

P.S. they want to be in a city with a direct flight to Shanghai and we don't have one to Hawaii.

We should close this thread then?

I hope our econ devel people have been talking to ADM for while, not just in reaction to this article as my scenario envisioned. That would be too late probably.

chaifetz10 · PostSep 23, 2013#102013-09-23T20:23+00:00

Well the PD is reporting ADM is in talks with Chicago now and Mayor Emanuel has issued a statement on the city having talks with them...so I'd say instead of closing this thread, maybe place it in the Downstate IL section? That way I can post follow ups with the exact details later one, including how Decatur reacts in the long term?

wabash · PostSep 23, 2013#112013-09-23T21:08+00:00

Thanks for posting this interesting development. Does anyone remember the CEO of Caterpillar's open letter to Governor Pat Quinn in 2011? It seems that IL companies almost have to either leave the state or shakedown Chi for tax breaks if they want to stay competitive and maintain their fiduciary duty to shareholders.

quincunx · PostSep 23, 2013#122013-09-23T21:18+00:00

KMOX reports the finalists are CHI, MSP, and STL

Here's the PD article via AP. There they talk about Australia. While obviously more direct flights internationally, there is no direct flight from Chicago to Australia.

http://www.stltoday.com/business/local/ ... 32aa4.html

beer city · PostSep 23, 2013#132013-09-23T21:24+00:00

KMOX reporting that there are 3 cities in the running Chicago, Minneapolis, and StL for about 100 positions and the prestige of a Fortune 500 - I would say we are the dark horse unless Missouri pulls out all of the stops in incentives, even then air connections might kill us.

Makes Aerotropolis sting even more now

pat · PostSep 23, 2013#142013-09-23T21:36+00:00

I think we have a fair shot. We're 135 miles from Decatur (closer than Chicago). I would think they would still want to stay reasonably close to Decatur. Minneapolis is much farther away. If its that much cheaper to be in MO (and STL) over IL, I say we stand a good chance.

2 stops (STL) to Australia vs 1 stop (Chicago and Minneapolis) is a tough sell though.

beer city · PostSep 23, 2013#152013-09-23T21:41+00:00

beer city wrote:KMOX reporting that there are 3 cities in the running Chicago, Minneapolis, and StL for about 100 positions and the prestige of a Fortune 500 - I would say we are the dark horse unless Missouri pulls out all of the stops in incentives, even then air connections might kill us.

Makes Aerotropolis sting even more now

Now reported as 200 jobs - the proximity to Decatur helps us a little - Decatur/Springfield is the dividing line between Cubs Cards - lets hope the decision makers are cards fans -

Think there could be a subsidy for flights to China and Europe if they take us seriously?

quincunx · PostSep 23, 2013#162013-09-23T21:45+00:00

pat wrote:2 stops (STL) to Australia vs 1 stop (Chicago and Minneapolis) is a tough sell though.

?? You can get to Australia from LAX, DFW, and Atlanta which have direct flights from STL.

arch city · PostSep 23, 2013#172013-09-23T22:02+00:00

With St. Louis being the international HQs for Monsanto and Solae (Dupont) as well as the North American HQs for Bunge, would ADM want to be in St. Louis with its competitors - despite having lots of assets in St. Louis?

Here's an excerpt from the Wall Street Journal...........

International markets are increasingly important to companies like ADM, as prices of commodities like corn, soybeans and wheat are affected by demand from fast-growing markets like China, where rising incomes are leading to increased demand for food. Several large U.S. agricultural businesses are already located around big cities: Cargill Inc., for example, is based in a Minneapolis, Minn., suburb and Monsanto Co. MON -0.42% is in St. Louis.

Years ago ADM used to appear on St. Louis' list of publicly-traded companies despite the fact it was HQd in Decatur.

shadrach · PostSep 23, 2013#182013-09-23T22:05+00:00

Isn't this the purpose of Jet Linx? I'm guessing they started operations at Lambert to offer STL businesses with flights since we have none.

It may be cost prohibitive for one executive to fly to i.e.: Shanghai, but often times, there's a team going and it may be a wash cost-wise.

pat · PostSep 23, 2013#192013-09-23T22:11+00:00

pat wrote:
2 stops (STL) to Australia vs 1 stop (Chicago and Minneapolis) is a tough sell though.

?? You can get to Australia from LAX, DFW, and Atlanta which have direct flights from STL.

It was a quick internet search. I could be wrong

innov8ion · PostSep 23, 2013#202013-09-23T22:14+00:00

quincunx wrote:
pat wrote:2 stops (STL) to Australia vs 1 stop (Chicago and Minneapolis) is a tough sell though.
?? You can get to Australia from LAX, DFW, and Atlanta which have direct flights from STL.

Thus the two stops to Australia from St. Louis vs. one from Chicago. I don't know how much this matters, though.

roger wyoming II · PostSep 23, 2013#212013-09-23T22:17+00:00

arch city wrote:With St. Louis being the international HQs for Monsanto and Solae (Dupont) as well as the North American HQs for Bunge, would ADM want to be in St. Louis with its competitors - despite having lots of assets in St. Louis?

From the Beacon article this morning on the growth of Plant Sciences in Saint Louis, Monsanto may be a hindrance:

"The fact that St. Louis is the home base for Monsanto, said Roger Beachy, former president of the Danforth Plant Science Center and a professor at Washington University, serves as a disincentive for other big agribusiness companies to have branches here. But on the other hand, Beachy noted that none of those companies has decided to make Research Triangle Park their world headquarters. "

https://www.stlbeacon.org/#!/content/32 ... rpage=4030

arch city · PostSep 23, 2013#222013-09-23T22:21+00:00

I think St. Louis could be a great choice for ADM, and in some ways better than either Chicago (Sara Lee) and Minneapolis (Cargill and General Mills) actually.

In addition to a skilled workforce and AG firms like Post Foods and ConAgra (Ralcorp), the Danforth Plant Science Center, American Soybean Association, National Corn Growers Association, World Agricultural Forum, and United Soybean Board are all based in St. Louis.

I would think a firm like ADM would like to be close to these types of assets. Although I could see ADM in downtown or CORTEX, I could see them in Clayton or Creve Coeur as well.

It's time for Missourah to step up.

Monsanto, Bunge, Solae and Post Foods should send letters of welcome to ADM.

quincunx · PostSep 23, 2013#232013-09-23T22:28+00:00

innov8ion wrote:
quincunx wrote:
pat wrote:2 stops (STL) to Australia vs 1 stop (Chicago and Minneapolis) is a tough sell though.
?? You can get to Australia from LAX, DFW, and Atlanta which have direct flights from STL.
Thus the two stops to Australia from St. Louis vs. one from Chicago. I don't know how much this matters, though.

I still don't get it. To get from STL to SYD you either stop in LAX or DFW (I don't see one from ATL. I swore I heard an ATL flight announced when I was in SYD last December). There are no direct flights to Australia from Chicago, so you'd be in the same situation there; you either stop in DFW or LAX.

I agree it's probably not the biggest deal

arch city · PostSep 23, 2013#242013-09-23T22:33+00:00

Question is.......is Illinois willing to lose another HQs? I don't think so.

I hope St. Louis nabs it, but I think Chicago and Illinois - as broke as it is - is going to offer ADM a good deal to move on Lake Michigan.

Nonetheless, I just don't see Chicago as an Ag center like St. Louis, Minneapolis, Kansas City or Omaha.

STLEnginerd · PostSep 23, 2013#252013-09-23T22:38+00:00

Arguments for St. Louis
- 2hours 15 mins from Decatur by car from St. Louis, 3 hours by car from Chicago so the time you save in a direct flight is lost in a drive to Decatur. Maybe exectutives don't drive to Decatur but alot of people would have to.
- One of the countries strongest nodes of biotech and agricultural companies. On another thread it was said that companies will pay what they must to locate where the talent is (refering to Silicon Valey) Well St. Louis is where the talent is for these fields.
- Low cost of living means less expensive office spaces and lower pay for workers so its cheaper to operate here.
- Two more Senators. When you are lobying congress for things that matter to your company it nice to have senators pulling for you. Since they operate in Decatur they already have IL on their side. Locating in St. Louis puts the senators from Missouri safely in their corner.
-Less traffic.
-Opportunities for rural, suburban and city living within an easy driving distance.

If they aren't SERIOUSLY considering St. Louis they should be and if the Economic Development Council isn't working on a serious package of incentives to propose then they should all be dumped and new people placed in their positions. St. Louis has a lot to offer.

Mayor Slay and Executive Dooley should be working this hard as well.