Category: Manufacturing

California Resources Corp. acquires full ownership of Elk Hills oil field

  • BY JOSEPH LUIZ
418022508-data.jpg
In this file photo taken at Elk Hills , Matt Wells, Mitch Tate and Steve Northern, left to right, make a connector change.

The California Resources Corp. has acquired 100 percent ownership of the Elk Hills oil and natural gas field in Kern County, according to the company.

The oil company said it purchased Chevron’s interests for $460 million and issued 2.85 million shares of CRC stock to Chevron. The deal went through April 1. Chevron had owned about 20 percent of the field’s assets. CRC had owned the rest of the field and has been its operator.

“We have operated this field for over 20 years and have developed a deep knowledge of the geology and strong operational expertise to deliver robust value from this asset,” said CRC President/Chief Executive Officer Todd Stevens. “We intend to apply this know-how to our newly acquired position, as well as transfer learnings and efficiencies to enhance CRC’s assets across California.”

 In 2017, the interests that Chevron held produced approximately 13,300 barrels of oil and natural gas liquids per day, according to the company.

CRC estimates that based on current prices, the field could provide the company an operating cash flow of around $100 million annually. Elk Hills is now estimated to make up about 43 percent of the company’s total production.

CRC’s acquisition of Chevron’s interests comes after the company went into a joint venture on the Elk Hills field in early 2017 with a portfolio company that is part of the private equity group Ares Management, L.P.

Ares paid $750 million and purchased 2.34 million shares in CRC stock to obtain some of CRC’s Elk Hills assets. The particular interests under the agreement are the Elk Hills power plant, a natural gas-fired power plant and a cryogenic gas-processing plant.

Some of the proceeds from the joint venture were used in purchasing Chevron’s interest in the field, Stevens said.

 “Acquiring sole ownership of such a prolific field is an ideal use of proceeds from our recent midstream joint venture transaction, adding both immediate production and cash flow, while providing for quick synergies and tremendous long-term development opportunities,” he said.

Elk Hills, located west of Bakersfield, was initially discovered in 1911 and has produced more than 2 billion barrels of oil and gas since then, according to CRC.

Construction milestone reached at Manteca Commerce Center

 

Central Valley Business Times

April 13, 2018

  • Dermody Properties puts in first wall panels for industrial building
  • “We are excited to be expanding our investments in the Central Valley”

The tilt-up and placement of the first wall panels for a 286,072- square-foot building that could be used as a distribution center has been completed by Dermody Properties in the Manteca Commerce Center, the Reno, Nevada-based company says. Dermody builds and manages logistics real estate.

The new building will feature a total of 50 dock doors, two grade-level doors, a 36-foot clear height and 156 car parking spaces. Construction is expected to be complete in the second quarter.

“We are excited to be expanding our investments in the Central Valley,” says Douglas Kiersey Jr., president of Dermody Properties. “The development of Manteca Commerce Center is consistent with our strategy of investing in key distribution markets with a high demand for industrial facilities and a well established transportation infrastructure.”

Manteca Commerce Center is located directly off of Highway 120, about 15 minutes south from the Port of Stockton, with access to Highway 99 and Interstate 5. The developer says the location provides “an ideal” West Cost distribution link to Fresno, Reno, Los Angeles and Las Vegas.

“Manteca Commerce Center is our second property in the Central Valley,” says George Condon, West region partner, Dermody Properties. “Companies are continuing to move from the Bay Area to the Central Valley to expand their businesses and lease Class-A warehouse space at a significant discount to the cost of Bay Area warehouses. Companies new to Northern California are also setting up shop in the Central Valley to serve the businesses and residents of the Bay Area.”

JLL is marketing the property. The project was designed by HP, Inc., and BCM Construction is the general contractor.

http://files.constantcontact.com/2cb20f61601/12d85a0b-161b-4ef2-85f1-4802f7ddbfea.pdf

HANFORD OFFICIAL: FARADAY FUTURE SETS MAY 21 TARGET TO INSTALL ASSEMBLY LINES

Faraday Future FF 91

Faraday Future hopes to start manufacturing the FF 91 in Hanford by late 2018. Image via Faraday Future

Published On April 11, 2018 – 12:45 PM
Written By John Lindt

Kings County officials this week traveled to the Southern California town of Gardena to meet with executive staff of Faraday Future as well as company founder Jia Yuetin to help make plans for the startup’s Hanford assembly plant.

Demolition work on the interior of the old Pirelli facility in the Hanford Industrial Park is underway as construction drawings are being completed for the remodel of the sprawling 1 million square-foot plant that will soon get underway.

Member of the Kings County Board of Supervisors Doug Verboon joined Kings EDC President John Lehn and Hanford City Manager Darrel Pyle and others from Kings County for an April 10 tour of the Gardena facility, where work is underway on the speedy electric car, the FF 91.

Verboon said he saw 12 cars at the plant and got to sit in one of them. ”It was very impressive — this operation is for real,” he said.

He added that he was told the company’s investment funding was secure, and they were looking to start assembly of the high-tech electric car in Hanford late this year.

Touring the plant, local officials saw employees busy at different stations making parts using 3D imagery. ”There is lots of technology on display.”

Verboon says now the focus of the company is for Kings County agencies to partner with Faraday to get the word out that jobs are on the way locally.

“Right now they have 700 employees in the LA area, but after they install assembly-line machinery in Hanford, set for May 21, they will need to hire some 54 employees in Hanford and up to 750 here over a period of time,” he said.

“They need help finding hotel rooms or places for employees to stay,” said Verboon, who is also looking to coordinate efforts with placement agencies and junior colleges.

“They already have a list of about 500 who are looking for work.”

Verboon added that the company “has a tight timeline” and expects to meet again with the same local team April 13. “We want to handle it the same as we did for the Surf Ranch project — a dedicated team who will answer all their questions” and ease the rollout of their business here.

Faraday Future makes headway in Hanford

  • Updated 
Faraday Future sign
Electric car company Faraday Future has a sign with its name outside the old Pirelli Tire plant at 10700 Idaho Ave. in Hanford’s Industrial Park.

HANFORD — It’s been a relatively quiet seven months since electric car company Faraday Future announced its plans to locate in Hanford, but the company seems to be slowly but surely moving forward with its plans.

“Things are absolutely moving forward,” said John Lehn, president and CEO of Kings County Economic Development Corporation (Kings EDC).

Lehn said he is in contact with Faraday officials multiple times a week. He said his office continues to be impressed by the quality of people who work for Faraday Future and has complete confidence in the company’s dedication to Hanford.

Faraday Future signed a lease in August 2017 to locate in a manufacturing facility in the old Pirelli tire plant at 10700 Idaho Ave. in Hanford’s Industrial Park. The company immediately hosted a clean-up event to prepare the 1 million square-foot new site for the move-in of manufacturing equipment.

The facility is supposed to be used to manufacture the company’s first electronic vehicle, the FF 91, and hopefully bring it to market.

Little tidbits of information have surfaced every once in a while since the announcement. Dag Reckhorn, Faraday Future’s senior vice president of global manufacturing, visited Hanford in September and October 2017 to talk publicly about the car and the company’s goals.

Faraday Future said it wanted a turn-key facility that offers a faster path to production, and picked the site in Hanford because it is strategically located between the country’s two largest electronic vehicle markets: Los Angeles and Silicon Valley.

But there have also been troublesome news surrounding the company as well, including shake-ups and departures within the company’s top executives and funding difficulties.

Lehn said he understands the skepticism the news has elicited, especially taking into account the scope and scale of what the company is trying to do.

Darlene Mata, Hanford’s community development director, said Faraday was recently issued a demolition permit for the inside of the plant and has been doing asbestos removal and lead paint remediation.

Mata said Faraday is also currently in the site plan review process with the city, meaning the department is making sure the entire site has the proper access and parking spaces that meet city standards.

“No building permit application has been submitted yet,” Mata said. “I don’t know when one will be submitted, but they said soon.”

Requests for comment from Faraday Future were not returned.

Lehn said Faraday is moving forward with the hiring process and is currently taking applications online only. He said his office has been involved with facilitating a few interviews already.

Faraday’s website has posts for several job openings in Hanford, including administrative positions, various “team member” positions and even a few management positions.

In addition to working with both Tulare and Fresno counties’ workforce boards, Lehn also said Kings EDC and Faraday are working in conjunction with West Hills Community College District to offer some type of introductory manufacturing course.

“A lot of things are happening all at once,” Lehn said. “Everything’s moving full speed ahead.”

http://hanfordsentinel.com/news/local/faraday-future-makes-headway-in-hanford/article_06b04ce2-7f91-529e-8c9c-61aea192edc2.html

PORTERVILLE PAYS FOR FIRST TWO OF 10 ELECTRIC BUSES

Two out of an order of 10 all-electric buses have been received by the city of Porterville at a cost of about $820,000 each.

Published On March 16, 2018 – 4:57 PM
Written By David Castellon

Porterville is a step closer to becoming one the first U.S. cities with a primary fleet of all-electric commuter buses.

On Wednesday, the city made its payment on the first two of 10 38-passsenger buses ordered from GreenPower Motor Co., which did the final assembly of the buses at its temporary manufacturing facility within two large hangars at the Porterville Municipal Airport.

Portions of the assembly also occurred in Taiwan and China.

The Canadian-based electric bus manufacturer is in the process of building a 125,000-square-foot factory across the street from the Porterville airport, where it plans to fully assemble up to 150 buses a year. And depending on how many bus orders go through in the coming years, the factory could expand up to 300,000 square feet and double its rate of bus production, said Brendan Riley, GreenPower’s president.

Porterville actually took possession of the two $822,000 buses on March 8, but the cost isn’t coming from city coffers. Instead the purchases are fully funded through $9.5 million in grants from the California Air Resources Board, which besides paying for the 10 buses also will cover the purchase and installation of 11 charging stations for them.

“Funding for this project is part of California Climate Investments, a statewide program that puts billions of cap-and-trade dollars to work reducing greenhouse gas emissions, strengthening the economy and improving public health and the environment — particularly in disadvantaged communities. The cap-and-trade program also creates a financial incentive for industries to invest in clean technologies and develop innovative ways to reduce pollution,” Leslie Goodbody, an engineer for the Air Resources Board, said in a written statement.

Porterville Transit Manager Richard Tree said one of the charging stations will be installed at the Porterville Transit Center, while the rest will be installed at the city maintenance yard, where most city buses are parked overnight.

For this order, GreenPower enlarged the batteries from the normal size of its EV 350 buses, extending their capacities to 400 kilowatt hours from 320 and the buses’ driving range to 250 miles on a single charge.

Riley said the Porterville buses will travel up to 230 miles a day on their routes, so they shouldn’t have to recharge until they’re finished for the day, eliminating the need to swap out buses to charge them during the day.

Though the city has the two of the new buses, Tree said they may not be put into service for another 45 days, as Porterville Transit logos still need to be adhered to them, while GreenPower will help the city conduct field tests and train transit drivers on the new buses.

Once they’re on the road, two diesel buses will be retired, and the Porterville’s 16 compressed natural gas-powered buses will continue to be used while they’re retired at a slower rate through 2029, said Tree, adding that once all the GreenPower buses are delivered, they will be the primary buses working city bus routes.

Riley said GreenPower will make another bus it owns available to Porterville on occasions when the city needs it.

As for the rest of Porterville’s bus order, Riley noted that the first two buses took six months to build, and the next three are expected to be ready in May, while the remaining five could be ready in mid summer.

As for the new GreenPower factory, he said the initial facility could be finished by the end of summer.

https://thebusinessjournal.com/porterville-pays-first-two-10-electric-buses/

Merced County Hopes A Deal With Port Of L.A. Turns Former Air Force Base Into Manufacturing Hub

  MAR 6, 2018

Just outside the city of Merced, slightly east of Highway 99 is what used to be Castle Air Force Base. Like most areas of the Valley, it’s rural. Across the road from the center are train tracks, and you can hear the railroad crossing signals ding. This unincorporated area of Merced County will soon become an inland port.

Now, there isn’t any water around; we’re still in the Central Valley. It won’t be the kind of port that serves ships and boats. It will be a place for products to be built and materials consolidated, and then sent to the Port of Los Angeles.

Today, two-thirds of the nearly-2,000 acre base is still an airfield, but the rest of it is the Castle Commerce Center.

“This is a site that has roughly about 75 tenants, about a 100 different lease holds,” says Mark Hendrickson, directory of community and economic development for Merced County. “We generate about $2.9 million in lease revenue.”

Merced County is hoping to use a portion of the former Castle Air Force Base as a hub for manufacturing and distribution in the Central Valley.
CREDIT MERCED COUNTY COMMUNITY AND ECONOMIC DEVELOPMENT DEPARTMENT

  Hendrickson says their goal is to redevelop Castle “to really turn it into a site where we can focus some solid attention on manufacturing. We a want to be a place where things are made because when things are made people are working.”

Back in October, Merced County’s Board of Supervisors developed an agreement with the Port of L.A. formalizing what Hendrickson calls a “hub and spokes” development. Merced will become a place of manufacturing and distribution, and use the nearby rail line and freeways to bring goods to L.A. to be shipped around the world. In kind, Castle may also become a place where the Port can send products for distribution.

Merced County isn’t the only Valley county building ties with the Port of L.A. Kern County recently got approval to expand their Foreign Trade Zone at TejonRanch. They also will move the zone’s affiliation to the U.S. Customs and Border Protection at the Port of L.A. The expansion means all of the industrial areas of Tejon Ranch are now within their foreign trade zone. Companies operating there will receive a break on import duties and fees. Tejon Ranch has announced the expansion will bring jobs to Kern County.

Hendrickson says the same could happen in Merced, when it comes to job creation.

“Using today’s workforce numbers, about one out of every nine jobs would be right here at Castle in about twenty years.”

There is one drawback though. More shipping could mean more air pollution.

Dean Florez is a member of the California Air Resources Board and a former state senator from Kern County.

“The kinds of jobs and economic growth this brings are very large diesel trucks that are running a lot of things that make the air a lot worse,” says Florez. “You know, that balance is really important between jobs, growth, and air mitigation.”

One issue is that companies send their trucks full of goods to a port, and then the truck typically returns to the distribution center, empty. If that truck is coming to Merced’s inland port, that could mean hundreds of miles driven just to return the truck.

“Companies need to figure out how to send items to wherever, but that these cargo trucks not come back empty.”

Florez says the Air Resources Board should come up with ways to incentivize companies to share their trucks, and reduce the total number on the road. He also says this is really an opportunity for outside groups to develop something like an Uber for trucks, where they share cargo going to the port and returning to the Valley.

“I doubt it will be state government that comes up with that,” Florez says. “But I do think it will be some outside force that will come in and say, ‘This is the way, really trucks should be running in California, we have this sharing mechanism and it actually would work very, very well.’”

Florez says he plans to bring this up with CARB later this year.

In Merced County, Hendrickson says they plan to use trains to mitigate truck pollution.

“We see our using our rail connectivity on-site to get trucks off the road, improve air quality, open up shipping opportunities for folks not only through Merced County and really throughout the entire San Joaquin Valley to places all over the world,” says Hendrickson.

Finding the best shipping practices from an inland port will take time. And developing an inland port in the first place has been a long time coming.

Mike Dozier is the former Community and Economic Development Director for the city of Clovis. He says that these sorts of deals don’t just happen overnight.

“What happens is you have this vision, and it might be ten years before that vision starts to materialize,” says Dozier.

Dozier says it takes time for infrastructure to develop, and to convince groups to believe in the project’s potential.

“You know, you just build on it, you just have to have things ready for when the time is right.”

For Merced County, officials hope that time is now.

http://kvpr.org/post/merced-county-hopes-deal-port-la-turns-former-air-force-base-manufacturing-hub

 

Kern County Economic Summit

The Kern County Economic Summit is an annual program featuring economists and business leaders who provide valuable information designed to educate and broaden perspectives on international, national, and regional economies.

Don’t miss this premier opportunity to join local businesses and government leaders in discovering ways to sustain and advance economic prosperity in our growing region, and what it means for our future.

Plastics manufacturer will bring 120 jobs to Dinuba

Arkansas-based Delta Plastics has announced plans to build a new manufacturing facility in the Tulare County town of Dinuba. Photo via Delta Plastics website

published on November 2, 2017 – 1:33 PM

Written by David Castellon

 

The world’s leading manufacturer of irrigation polytube for the agricultural industry has chosen land north of Dinuba as the location for its new manufacturing plant.

“Tulare County was chosen after an extensive search throughout California for the best location for their venture,” according to a press release issued today by the Economic Development Corp. of Tulare County.

The agency reports that Arkansas-based Delta Plastics plans to build a 75,000-square-foot manufacturing plant in an industrial park off Road 68 in the area of Avenue 430 and employ up to 120 people there.

EDC President Paul Saldana said, “120 manufacturing jobs are pretty significant,” adding that he sees a lot of opportunity for Delta plastics to grow its operation in the coming years.

The new plant, operating under Delta’s Revolution Plastics division, will produce polytubes — hollow, high-grade plastic tubes that can be rolled out into fields and have holes punched into them to insert water emitters. The tubes are filled with water and expand, much like a fire hose, except the water shoots out of the emitters, irrigating nearby crops.

The plant also will produce Revolution Bag trash can liners made from recycled polytube material and other plastics that the company plans to collect from agricultural operations throughout the state to process at the Dinuba plant.

Delta Plastics officials couldn’t be reached immediately for comment, but a video on its website states that a portion of the recycled plastics are sold to other manufacturing businesses.

Delta currently has two manufacturing plants in Little Rock, Arkansas and Mesquite, Texas, along with a recycling plant in Stuttgart, Arkansas.

“We look forward to our growth and partnering with the agriculture industry in California as we expand our commitment to waste diversion and recycling throughout the state,” Louis Vasquez, Delta Plastic’s director of corporate development, said in a press release.

“We are excited about Revolution Plastics coming to the Dinuba area and look forward to having their employees live, shop and dine in our community,” Dinuba Mayor Scott Harness said in the same release.

Saldana said EDC representatives spent a long time showing Delta officials developed and undeveloped sites in Tulare County, and he believes that variety of available space helped sway the company to choose the Dinuba area, along with its central location in the state.

Plastics manufacturer will bring 120 jobs to Dinuba

 

Manufacturing company expands to Tulare County

DINUBA 
November 2, 2017 10:52am

 

•  Makes irrigation tubing for agriculture

•  “Partnering with the agriculture industry in California as we expand our commitment to waste diversion and recycling”


Delta Plastics of Little Rock, Arkansas, which makes irrigation polytube for the agriculture industry, is locating its new venture, Revolution Plastics, in Tulare County.

According to Louis Vasquez, the company’s director of corporate development, Tulare County was chosen after an extensive search throughout California for the best location for their venture.

“The Tulare County Economic Development Corporation was instrumental in assisting us in identifying sites, providing needed information and connecting us with local contacts that assisted us in our site search,” he says.

Revolution Plastics is expected to eventually employ 120 people and will make products from recycled California-sourced ag plastics.

“We are excited about Revolution Plastics coming to the Dinuba area and look forward to having their employees live, shop and dine in our community,” says Dinuba Mayor Scott Harness. The facility will be located just north of the Dinuba city limits and will include the construction of a 75,000-square foot building.

Delta Plastics operates manufacturing facilities in Little Rock and in Mesquite, Texas. The facilities make the company’s signature polytube products, Revolution Bag can liners and other construction and ag films, which will be produced at the new California facility. Delta also operates a recycling facility in Stuttgart, Arkansas, which has diverted over 1.2 billion pounds of waste material from landfills since 1998.

“We look forward to our growth and partnering with the agriculture industry in California as we expand our commitment to waste diversion and recycling throughout the state” says Mr. Vasquez.

http://www.centralvalleybusinesstimes.com/stories/001/?ID=33573

Wonderful Spec Project Underway in Central Valley

The 1 million-square-foot building, which will sit within the 1,600-acre Wonderful Industrial Park in Shafter, Calif., is one of only a few developments of its kind in the market.
4100 Express Ave., Shafter, Calif.
4100 Express Ave. in Shafter, Calif.

The call for premier industrial space in California’s Central Valley is growing louder, and Wonderful Real Estate, formerly Roll Real Estate, is responding with a new project. The company is in the midst of developing a 1 million-square-foot speculative industrial property in Shafter, Calif., roughly 130 miles north of Los Angeles and 100 miles south of Fresno in the Central Valley.

It’s the right time and the right place. “Strengthening market fundamentals, growth of e-commerce and awareness of the Central Valley industrial market has given us the confidence to go spec,” Joe Vargas, president of Wonderful Real Estate Development, said in a prepared statement. WRE is constructing the new building at 4100 Express Ave., within the company’s 1,600-acre, rail-served Wonderful Industrial Park. The project holds the distinction of being one of just a few million-square-foot-plus spec industrial developments currently underway with 40-foot clear height, oversized large truck courts and access to four major U.S. Ports (Los Angeles, Long Beach, Hueneme and Oakland).

4100 Express’s location will provide users with even more than cutting-edge accommodations and coveted transportation infrastructure; it will also offer access to an ample pool of labor that is both qualified and committed. WRE notes that existing tenants at Wonderful Industrial Park consistently record annual labor turnover rates in the low single-digit range.

Central Valley takes center stage

Solid positive net absorption and strong rental growth have characterized the Central Valley industrial market for the last two years, according to a second quarter report by commercial real estate services firm JLL, which spearheads leasing activity at Wonderful Industrial Park. And even in the face of new development, the vacancy rate remains a respectable 5.3 percent and is expected to head downward. There’s something about the Central Valley.

“Demand is coming from primarily big-box users looking to capitalize on real estate costs and outbound distribution. Between super-regional distribution plays and e-commerce distribution the Central Valley is cementing itself as a Tier 1 distribution market within the Southwest U.S.,” Mac Hewett, vice president with JLL, told Commercial Property Executive.

WRE expects 4100 Express to be ready to welcome its first tenants in March 2018.

Image courtesy of Wonderful Real Estate

https://www.cpexecutive.com/post/wonderful-spec-project-underway-in-central-valley/