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Ergon expanding Vicksburg refinery, spending $150M

ergon-1-logo-primaryVICKSBURG — Ergon Inc. says it will spend $150 million to expand its Vicksburg refinery.

The Flowood-based private company said yesterday that it would enhance parts of the refinery and expand its tank farm. It said the changes, in addition to allowing it to make more products, would allow Ergon to feed the refinery with more kinds of crude oil.

“These investments will allow Ergon to further diversify its product portfolio,” Don Davis, president of Ergon Refining Inc., said in a statement.

The Vicksburg refinery produces base oils used in industrial lubricants, tires, grease, chemical processing, metalworking fluids and hydraulic fracturing oils.

Controlled by the Lampton family, Ergon spent $250 million on expansion in Vicksburg in 2009. The company, which Forbes estimates has $3.8 billion a year in revenue, also owns an ethanol plant and towboat company in Vicksburg, with more than 250 employees there. It’s not clear if the expansion will create any jobs. Ergon did not respond to requests for comment Monday and Tuesday.

Ergon is also expanding its other refinery in Newell, West Virginia, and says it has spent $600 million on the two refineries over the past 10 years. The company sells the products of the two refineries worldwide.



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