Hemp Inc (OTCMKTS:HEMP) recently announced that its fully-owned subsidiary, Industrial Hemp Manufacturing, LLC acquired decortication plant, said to be the largest in North America. The Spring Hope, North Carolina situated plant sits on a 9 acre land in 70,000,000 square foot warehouse. Hemp said that on this plant, it will start production of loss circulation materials (LCM), fiber and absorbents, initially from kenaf, followed by those from hemp.
Hemp, Inc. to produce lost circulation material for drilling rigs
The company also announced that it will start production of lost circulation material or LCM, as it likes to call it, for drilling the rigs. LCM, the company notes, is mainly used for the purpose of ensuring that seals are maintained when rigs are drilled for gas, oil, water or other gas or liquefied products.
This can be called a smart move by the company since LCM has a standalone capacity to help Hemp, Inc. produce a whopping amount of revenue that can cross millions and billions of dollars. Hemp, Inc., interestingly, has some of the top most oil companies as its primary customers, as claimed.
Fiber materials to diversify portfolio
The new facility acquired by Hemp, Inc.’s subsidiary is also advantageous for the company to diversify its portfolio. Through this decortication plant, the company also plans to start producing fiber materials for industries that include fibers and paper. Also, it is will be used for other materials production, such as beauty products, health related products, plastics and building materials- basically, those industries, which make use of hemp for creating these products.
Meanwhile, Hemp, Inc. aims at striking a joint venture with other companies that are akin to these industries. This, according to the company, will help it in diversifying “portfolio of synergistic businesses.” The move of company is most likely to bring it a market leader position, along with value, revenue and cash flow.
