The five-phase, $147 million expansion encompasses new administrative and laboratory facilities, a new technical development center and upgrades to refining units to increase product diversity and quality control.
The expansion will enable Ergon to increase liquid production at its Vicksburg facility. Ergon will add additional storage tanks and infrastructure at its Newell, W.Va., lube refinery and its terminal facilities in Magnolia and Marietta, Ohio. In addition, Ergons midstream companies (Magnolia Marine Transport Co., Ergon Trucking, Inc., Ergon-West Virginia, Inc., and Ergon Oil Purchasing, Inc.) will expand their logistical capabilities.
The expansion will add 50 jobs at the Vicksburg plant, which now employs 783 people.
Phase one expansion is slated to begin next month, with all phases to be completed in 2015.
Ergon Refining, Inc. is the world’s largest producer of naphthenic specialty oils.It supplies base, process and electrical insulating oils to customers around the globe. Itis a wholly owned subsidiary of Ergon, Inc.
Ergon expanded capacity at its Vicksburg plant in 2006, 2009 and 2010 to reach its present day capacity of 22,000 b/d of naphthenic base oil. Its Newell lube refinery has capacity to produce 1,900 b/d of API Group I and 2,900 b/d of Group II paraffinic base oil.