Baker Petrolite plans expansion here

Kilgore Economic Development Corporation is in negotiations to aid a long-time local business in an $18-$22 million expansion.

Baker Petrolite, an oil and gas chemical blending and storage company, has plans to expand its Kilgore Division.

Doug Smith, Kilgore Petrolite field manager, said the company — which has been in Kilgore since 1959 — has outgrown its facility and the recent boom in efforts to drill in East Texas and Louisiana oil and gas fields, paired with demand for Baker Petrolite products, has prompted the company to expand its facility.

"We need to expand to meet demand," Smith said. "We have product shipped as far as Pennsylvania and we are in a struggle to keep up."

According to Smith, the expansion would give the company more room to blend and store in-demand chemicals and provide necessary office space. The expansion includes a new lab, storage facilities and new administrative offices.

Baker Petrolite officials have plans to purchase 10 acres of property around its facility off of State Highway 42; approximately five acres of the property, valued at $78,000, is owned by KEDC.

Amanda Nobles, KEDC executive director, said Petrolite officials have not submitted an application to purchase the land but the KEDC board has no plans to enter into negotiations with any other companies.

The price tag of the expansion is higher than expected because Baker Petrolite looks to exceed government guidelines with allstainless steel mixing vats and equipment. The company also plans to completely rebuild then raze the former facility.

Smith said the company has plans to add another 30 jobs to the existing staff of 100.

The first phase of the expansion is slated to begin in January, with 64,000 square feet of concrete poured for storage slabs and employee parking. Phase 1 carries a $2.1 million price tag.