Permian shale customer demand drives Dragon’s San Angelo purchase

By Luke Geiver | September 12, 2017

The demand for surface production equipment has provided an opportunity for Beaumont, Texas-based Dragon to expand its offerings to the Permian Basin. The manufacturing company that builds and sells oil and industrial related tanks and other related infrastructure announced this week the acquisition of a 19-acre production tank facility in San Angelo, Texas. The city is southeast of Midland, Texas.

Earlier this year, Dragon began increasing its frac equipment rebuilding efforts. The reasoning behind the purchase—price or seller was not disclosed—of the San Angelo site was driven by increased customer demand, the company said.

“Our customers are demanding high-quality, reliable equipment at a lower cost,” said Willo Crenshaw, president of Dragon. In addition to the demand from clients in the Permian, the region has a strong work force capable of building the new production tanks, he said.

Initially the plant will build API-certified production tanks, but it also has the capability to build fiberglass tanks in the future. The new manufacturing site will be Dragon’s fifth surface production equipment plant. In total, the company has 21 manufacturing facilities.

By December, the Dragon team will have production at the site back in service. Sales, service and parts will be available at the site, however, starting immediately.