Raven Industries (RAVN), a diversified technology company, said Wednesday that its Engineered Films division has added production capacity to its Midland, Texas facility.
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Shares were up 4.5% and earlier hit $31.35 – the highest since May 2014.
The company said that, in recent months, it has experienced an increase in demand for its durable geomembrane containment liners, used during the drilling process in the Permian Basin and other shale plays across the country. Raven geomembranes are used to line frac pits, secondary containment systems, reserve ponds, and rig-site pad liners; these products play a significant role in protecting the environment by preventing the escape of brine produced water and other drilling fluids into the surrounding soils and water reserves.
Raven has invested in additional manufacturing capabilities, enhancing the overall capacity of its facility in Midland, Texas. As part of the expansion process, new 146-inch wide-width raw materials, produced on the company’s extrusion-lamination line in Sioux Falls, S.D., will be further processed at the Midland plant into finished containment systems.
The company has also increased the available production capacity of its Midland operation by three-fold, adding shifts and extending production to 24 hours a day, 7 days a week. By more than doubling its workforce, this increase has also created additional job openings in Midland. In mid-January, Raven production ramped up, and in two short weeks, the company seamlessly implemented all the requirements to meet full capacity output.