ADM Cocoa, Pennsylvania, USA

In April 2006 the agricultural produce processing company Archer Daniels Midland (ADM) made plans to build a new US cocoa processing and chocolate manufacturing facility in a move designed to meet growing demand for its cocoa ingredients.

ADM, which is one of the world’s largest processors of cocoa, required the new facility to strengthen its position in the global cocoa market. ADM purchased a 74-acre site for the plant construction at the new Humboldt North Industrial Park, Pennsylvannia.

The permits for construction were granted from the Hazelton City Council and construction was started in the third quarter of 2006. The $40m plant is expected to be in production by September 2007. President of ADM Cocoa, Mark Bemis, said: "We are pleased to announce Hazleton as our location of choice for this state-of-the-art facility… This plant illustrates ADM's commitment to meeting its customers' growing need for high-quality cocoa ingredients and will strengthen ADM's worldwide position in the cocoa industry."

The new 500,000ft² plant will create 200 jobs when it starts production.

ADM INCENTIVES

ADM received a great deal of assistance from CAN DO Inc, a non-profit making economic development company working for the local Hazelton area. CAN DO were able to help ADM locate a suitable site at the new industrial park and aquire the correct permitting for the new plant. Robert Moisey, Chairman of CAN DO Inc, said: "Our staff has worked long and hard to make this project a reality, and it's a tribute to everyone in our community when one of the largest agricultural processors in the world chooses Hazleton for the home of its latest state-of-the-art processing plant."

Hazelton county commissioners have given ADM a tax break for 10 years and also Hazel Township has agreed not to collect any property taxes for 10 years.

ARCHER DANIELS MIDLAND

ADM already has cocoa processing plants in North and South America, Europe, Asia and Africa and is a premier industrial chocolate manufacturer in North America. It had previously announced plans to build a new cocoa processing facility located in the mid-Atlantic region of the United States but has now chosen Hazelton.

The Decatur-based company is a world leader in agricultural processing and fermentation technology. The company is one of the world’s largest processors of soybeans, corn and wheat, as well as a leader in the production of soybean oil and meal, ethanol, corn sweeteners and flour.

ADM produces value-added food and feed ingredients for the market. The company owns over 250 processing plants worldwide and in 2005 had net sales of $35.9bn. Part of the team working on the construction and outfitting of the new plant is Cavanaugh Electrical Contracting Inc.

COMPANY STRATEGY

In August 2006 ADM expanded its industrial chocolate manufacturing capabilities in Europe through the acquisition of the UK's Classic Couverture, a Liverpool based chocolate manufacturer, from Edward Billington and Son Ltd. Mark Bemis said: "This acquisition provides a solid platform for ADM Cocoa's expansion in European industrial chocolate manufacturing, allowing us to better serve our customers' finished chocolate needs… Classic Couverture's state-of-the-art manufacturing plant in Liverpool complements our existing facilities in Europe, allowing us to maximize synergies between operations."

COCOA PROCESSING

In the processing plant the cocoa beans are washed and roasted. They are then de-hulled by a 'nibber' machine that also removes the germ. The nibs are then ground into a thick creamy paste, known as chocolate liquor. This 'liquor' is separated into cocoa powder and cocoa fat (cocoa butter) using a hydraulic press or the Broma process. This process produces around 50% cocoa butter and 50% cocoa powder. Standard cocoa powder has a fat content of approximately 10% –12%. Cocoa butter is used in chocolate bar manufacture, other confectionery, soaps, and cosmetics.

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