Agricultural giants ADM and PYCO Industries announced plans to combine their cottonseed processing operations in Lubbock, Texas, through a new joint venture expected to launch in the third quarter of 2025.
The agreement will create a majority PYCO-owned entity governed by a six-member board with equal representation from both companies. Each partner will contribute their existing Lubbock-based processing facilities to the joint venture.
"ADM is continuing to deliver on opportunities for strategic simplification across its global footprint," said John Grossmann, president of ADM's North American Ag Services and Oilseeds business. "Bringing together these two operations will allow us to continue serving customer needs while offering opportunities for enhanced operational efficiencies."
The partnership aligns with PYCO's strategic goals, according to company president Robert Lacy.
"PYCO is actively pursuing strategies to enhance our competitiveness for our members while ensuring our customers have consistent access to the products critical to their business," Lacy said.
Industry analysts view the joint venture as part of a broader trend of consolidation in agricultural processing to achieve greater scale and efficiency in competitive markets.
