Aug. 23–After sitting vacant for two years, a 336,000- square-foot industrial facility in Cuero will soon be the main Texas distribution center for a Houston-based oil drilling products company.
OHS Resources Corp. bought the former Mount Vernon Mills cotton weaving facility at 202 N. Gazzie St. in Cuero from South Carolina-based MV Cuero Partners on Friday, said Bob Hughes, OHS Resources president and chief executive officer. OHS Resources manufactures a nontoxic substance that is added to oil and gas well drilling fluids.
“The facility is right in the middle of our customers in the Eagle Ford oil basin. That whole area is surrounded by oil wells and drilling, and we ship a large amount across Texas” and to other states, he said. “It was very central to a lot of our customer base. We thought it would be a great location for our company, because we’re oil and energy.”
OHS Resources started operating from the facility on Tuesday and received its first truck load there, Hughes said. It will take a month or two for the new distribution center to become fully operational. The company already locally hired four employees, but will have a total of about 40 local employees when the facility is at full capacity.
“Some of them worked at the old plant, and they were happy to come back and be working in the same place,” Hughes said.
Company officials are cleaning up the facility, updating the electrical and making sure it’s ready for distribution. They didn’t have to do any renovations because the facility was up to par, Hughes said.
The sale was quick and took about three weeks, Hughes said. MV Cuero Partners purchased the facility in 2016 with the intention to sell it. Mount Vernon Mills was established in the early 1900s, and shut down in June 2016 causing about 275 employees to lose their job.
Hughes said his company is excited to work with the Cuero community. Cuero is also located near Intestate 10, which will help the company’s distribution.
“We felt like Cuero was very pro business, and would be happy to get a company in there that would be bringing jobs and work into that environment,” he said.
OHS Resources formed about a year ago, and is about six times larger than it first was, Hughes said. The company was able to buy the facility because oil and gas business has increased. The company also has a housing facility in Midland, which the Cuero facility will distribute to.
MV Cuero Partners was represented by Colliers International during the sale, said Patrick J. Kennedy, Cuero Development Corporation executive director. Kennedy has worked with the real estate company since April to find a buyer for the facility. He’s worked to help sell the facility since it’s been vacant.
OHS Resources hasn’t asked for any incentives yet, nor has Cuero Development Corporation offered any, but there could be some in the future, Kennedy said.
“We’re going to see how it materializes on their needs in expansion,” he said.
Kennedy said the 40 new local jobs will have a strong economic impact on Cuero.
“That building has been in this community for over 100 years, and there was a void when it shut down,” he said. “We look forward to helping them, and we welcome them into the community. We’re here to assist them for their needs. We’re hoping because they have enough space that they will expand here.”
Kathryn Cargo reports on business and agriculture for the Victoria Advocate. She may be reached at firstname.lastname@example.org or 361-580-6328. Follow her on twitter @kathryncargo.
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