Locus acquires facility to expand Midland operations

Locus FS is growing alongside the Permian Basin oil and gas producers it serves.

The company has acquired a new production facility in Midland, significantly expanding its blending, storage and logistics capabilities. Locus FS will own the property rather than lease it.

The new facility will initially provide about three times the blending capacity of the company’s existing Midland operation, with enough space and infrastructure to eventually expand to as much as five times its current capacity. Over time, Locus FS plans to introduce additional automation into blending and production processes at the site, further increasing throughput, repeatability and operating efficiency.

The company’s biosurfactants are produced in Ohio. The company’s main finished product blending facility is in Midland.

The new location will also double the company’s under-roof storage capacity, provide additional space for finished product inventory and enable future installation of bulk storage tanks. Together, the expanded capabilities will give Locus FS greater flexibility to manage inventory, increase production throughput and respond more efficiently to changing customer needs.

“Demand for our technology continues to expand, particularly as oil and gas operators look for new ways to improve production and recovery through more effective chemistry. By significantly increasing our capacity in Midland, we are putting the infrastructure in place to scale with our customers while continuing to manufacture our solutions here in the United States,” John Uhran, CEO of Locus Fermentation Solutions, said in a statement.

“Scaling our Midland operation gives us much more than additional production capacity,” said Marty Shumway, senior vice president of Locus Bio-Energy, in a statement. “It gives us the operational flexibility to blend more product, hold more finished inventory and move product to customers more efficiently. The site also provides room to introduce greater bulk storage and automation over time. Ultimately, it puts us in a much stronger position to respond quickly as customer adoption and volumes increase.”