ADM expands footprint in Africa with new facility in Nigeria

NIGERIA – Archer Daniels Midland (ADM), a global food processing and nutrition company, has officially opened a new facility at Lagos Free Trade Zone (LFZ), Nigeria.  

The expansion marks a major milestone in ADM’s strategy to strengthen its presence in Africa and enhance its ability to serve customers and partners in the region. 

The new facility will serve as a hub for innovation and collaboration, leveraging the benefits of LFZ’s strategic location, advanced infrastructure, and business-friendly environment. 

“The Lagos Free Trade Zone offers a unique opportunity for businesses to thrive, with its strategic location, world-class infrastructure, and favorable business environment,” Segun Oyinloye, Marketing Communications Manager at ADM said. 

“ADM’s facility is designed to take full advantage of these benefits, providing a hub for innovation, collaboration, and growth with next-generation thinking.” 

ADM is a key player in Nigeria’s animal nutrition premix market.

The company operates a manufacturing plant in Lagos and distributes premixes through a network of three distribution centers while also supplying additives and ingredients to animal feed customers.  

Beyond animal nutrition, ADM’s Nigerian operations include Human Nutrition and Carbohydrate Solutions businesses. 

Lagos Free Trade Zone 

The Lagos Free Trade Zone, owned by Singapore-based Tolaram, is an integrated industrial ecosystem with direct access to the Lekki Deep Sea Port.  

The zone is expected to create approximately 30,000 direct, indirect, and induced jobs once fully occupied. 

Recently, the International Finance Corporation (IFC) announced an investment of up to US$50 million to support the expansion of LFZ. 

“Lagos Free Zone is poised to become a transformative hub for industrial activity, driving job creation and enhancing Nigeria’s competitiveness in global markets,” Dahlia Khalifa, Regional Director, Central Africa and Anglophone West Africa, IFC said. 

“We are proud to partner with Lagos Free Zone in building the infrastructure necessary to attract global and local businesses, enabling Nigeria to achieve its full economic potential,” 

ADM expansion in Africa 

ADM’s expansion in Nigeria aligns with its broader strategy to deepen its footprint in Africa.

In September 2024, the company inaugurated a new office and advanced laboratories in Nairobi, Kenya, designed to drive innovation in food and beverage applications as well as animal nutrition.  

These laboratories focus on research and development, offering tailored solutions for local markets, including beverages, alternative proteins, and animal feed. 

Additionally, earlier in 2024, ADM acquired Comhan, a South African flavor distributor, further strengthening its investments in flavor production worldwide, with facilities in China, Germany, and the U.S. 

Despite its expansion efforts, ADM reported a 9 percent decline in revenue for the Full-Year 2024, totaling US$85.53 billion, down from US$93.94 billion in fiscal 2023.  

The company attributed the revenue drop to challenges in its Ag Services and Oilseeds division, as well as shifting global trade and regulatory policies. 

Looking ahead, ADM aims to achieve US$500 million to US$750 million in cost savings over the next several years, including US$200 million to US$300 million in 2025.