CHS Inc. recently announced the closing of three facilities located throughout the Midwest.

CHS has ceased production at soybean processing facilities at Hutchinson, Kan., and Creston, Iowa, and closed its Innovation and Technology Center at Eagan, Minn.

According to Annette Degnan, CHS director of marketing communications, the closings follow discussions among Jay Debertin, CHS CEO, employees and member-owners as they looked at ways to restore financial flexibility to the company. That included reviewing all company assets to determine which would help position the agribusiness for long-term success.

According to reports, CHS had a fiscal 2017 net income of $127.9 million, down from fiscal 2016’s net income of $424.2 million.

144 affected employees eligible for severance benefits
A total of 144 employees at the three closed locations are affected. Impacted workers are eligible for severance benefits, including outplacement assistance, Degnan says.

“CHS remains committed to helping its owners strengthen and grow their operations,” Degnan says. “CHS will continue to focus on operations which are more closely aligned with other CHS commodity-based core businesses.”

Degnan says CHS acquired the Hutchinson, Kan., facility in April 2008, from Legacy Foods. The plant produced Ultra-Soy brand textured soy proteins, an ingredient used by food service and food manufacturers as a nutritional supplement in processed foods containing meat, and in snacks and health foods. CHS acquired the Creston, Iowa, facility in 2011 from Creston Bean Processing. Creston operations included soybean crushing, and manufacturing both non-GMO and GMO soybean meal and soy flour used by consumer and pet food manufacturers.

The CHS Innovation and Technology Center in Eagan opened in 2013 and provided product application research and development for CHS customers and marketing and sales staff, she says.

Mankato, Minn., plant to remain open
CHS has other soybean protein production facilities, one in South Sioux City, Neb., that manufactures soy protein isolates, and another in Mankato, Minn., which has produced Honeysoy-brand soy flour for more than 50 years.

The Mankato facility will not be impacted by the closings. It is a soybean crushing, refining and soy flour manufacturing facility, Degnan says. CHS soybean facilities in three other Minnesota locations — Fairmont, Savage and Winona — will not be affected either, she says. Fairmont is a soybean crushing and meal facility; Savage and Winona are grain marketing river terminals.

“Over the past 11 months, CHS worked hard to reposition the locations with a buyer, or buyers, each with their own list of conditions and business requirements,” Degnan adds. “Unfortunately, market dynamics forced a different decision.”