SAO PAULO, July 17 (Reuters) - U.S.-based grain merchant

Archer Daniels Midland ( ADM ) is closing a pet food plant in

Brazil, according to a statement sent this week to Reuters in

response to questions, as part of broader efforts to streamline

costs and operations.

ADM said workers at the facility, which will operate for

another 90 days, were informed of the decision on July 15, a Sao

Paulo-based press officer said.

"After exploring a wide range of alternatives, we have

determined that our Tres Corações (TCO) facility and related

businesses and assets are no longer aligned with our future

operational needs, the ADM statement said.

A source familiar with the matter said the company tried to

sell the unit for about a year, with no buyers. ADM did not

comment on the failed sale attempt, which was reported in the

local press.

ADM in February said it would cut hundreds of jobs and

reduce costs by $500 million to $750 million over the next three

to five years, after posting its lowest fourth-quarter adjusted

profit in six years.

In 2024, ADM's so-called nutrition division, the smallest of

three business units, was at the center of an accounting

investigation.

The company remains a major grain trader and processor in

South America, with facilities for vegetable oil and biodiesel

production.

Acquired by ADM in 2019, the Tres Coracoes plant had over

900 employees and annual production capacity of approximately

525,000 tons of pet food products, the company said.

ADM said it still operates one animal nutrition products

factory in the country, located in Sao Paulo state.