By Phil Lavelle

(Reuters) – A California-based company is building a marijuana mega-factory. Federal legalization will enable it to distribute cannabis oil, edibles and joints beyond California’s borders.

California legalized recreational cannabis for use in 2016. However, it is still on the federal controlled substance list.

On April 1, the U.S. House of Representatives approved a bill to repeal the federal marijuana ban, but it’s unlikely the Senate would approve the measure.

Joshua Krane is the vice president of operations at 4Front. He said that the 170,000 square foot (15,793 sq meter) company’s manufacturing and processing area outside Los Angeles can supply cannabis products to the west coast of the United States if there are no restrictions.

He stated that the facility is futureproof in the sense that it can service the whole California market. However, once the capability to transport and sell cannabis over state borders, the facility will be capable of serving the West Coast.

Krane stated that the factory opened in November 2021 and is currently operating at between 20-25% capacity.

He said, “As we witness the natural rise of the industry,” adding that there will be an increase in demand as federal legalization is implemented. We would ramp up production as much from the building as required by the state, and hopefully the nation.

Krane stated that the automated plant is one of the most advanced in California. They produce oils and candies, both internal and from partner brands.

Krane explained that edible products are most in demand and have seen a surge of interest since the 2020 coronavirus pandemic.

It has been difficult to keep up the demand from new customers. The transition to cannabis from other vices and alcohol has been remarkable.

As lockdowns took effect in March 2020, sales of recreational marijuana rose nearly 50% from a previous year, according to Flowhub’s cannabis point-of-sale and data platform Flowhub.

Commerce factory, California has a capacity to produce over 400,000 candy pieces per shift and a rolling machine that can handle 2,000 joints an hour.