SCS-Fleaux merger creates new jobs in Permian Basin
SCS Technologies and Fleaux Services merged to form SCS Industrials, creating new jobs and planning expansion in Texas, including a distribution hub in Midland. This growth is significantly driven by demand from data center construction, which now comprises one-third of the company's backlog. The company manufactures critical equipment, including water chilling systems for data centers.
Houston-based SCS Technologies and Shreveport-based Fleaux Services have officially merged to form SCS Industrials, a new entity employing 250 people. Cody Johnson, former CEO of SCS Technologies, will lead the combined company as CEO, while Trey Moore, previously CEO of Fleaux, will serve as president. The merger aims to create a single-source provider of measurement equipment and field services for upstream and midstream energy operators, expanding its reach into data center manufacturing.
The newly formed SCS Industrials anticipates significant job creation, particularly at its Big Spring, Texas, production facility, where additional production shifts are expected to add 50 jobs. The company also plans to establish a distribution hub in Midland, Texas, as one of seven planned hubs across Texas, Louisiana, Oklahoma, and New Mexico. According to CEO Cody Johnson, this growth and demand for new manufacturing is largely driven by the booming data center construction sector, which now accounts for one-third of the company's backlog. SCS Industrials fabricates specialized equipment, including water chilling systems essential for cooling data center computers.
The company's core business involves designing, fabricating, and servicing crude, produced water, NGL, and gas custody transfer and allocation measurement skids, along with vapor recovery units. Johnson emphasized that the merger creates a one-stop shop for hydrocarbon-gathering facilities, streamlining procurement for operators. Additionally, SCS Industrials offers an artificial intelligence platform allowing real-time monitoring of equipment design, manufacturing, and inspection, with data stored in the cloud.