Energy Recovery Commissions New Production Facility
Energy Recovery, Inc. (NASDAQ: ERII) today announced that manufacturing of PX® Pressure Exchangers® (“PX“) has begun in its newest production facility in Tracy, California. The opening of the 54,000 square foot facility marks the completion of a comprehensive manufacturing capacity increase plan that, combined with process optimization and additional equipment procurement, has more than doubled the Company’s output of PX ceramic components in just under two years. “We expect revenue growth of up to 25% this year in our Water segment, and the opening of our Tracy facility gives us confidence in fulfilling our strong backlog of orders while creating critical redundancy of our manufactured components,” said Robert Mao, Energy Recovery Chairman of the Board and President and Chief Executive Officer. “We were able to progress quickly, ensuring this facility was capable of operations while taking the necessary safety precautions against the spread of COVID-19.”
The city of Tracy is located 47 miles east of Energy Recovery’s headquarters in San Leandro, California. The close proximity of the two facilities allows for better integration and collaboration within the manufacturing process, helping to ensure consistent product quality across all production locations. Tracy was selected as a location due to its diverse pool of skilled labor, location in a low-risk seismic zone, independent power grid and access to key transportation access points. “Thanks to our strong relationships and market insight, we were able to accurately forecast the rapid growth of desalination we are seeing today and implement strategic capacity expansions. The Tracy facility has flexibility for further capacity additions in the future as required and positions us continuing reliably serving our customers’ growing businesses,” said Emily Smith, Energy Recovery’s Senior Vice President of Corporate Development and Operations.