NewAge Industries Inc. purchased two building units at a location 7 miles away from its Southampton, Pa., headquarters intended for production capacity expansion and office space.
The manufacturer of plastic, rubber and silicone tubing, hose and molded components plans to renovate the space for tubing extrusion equipment and injection molding presses, according to a May 26 news release.
The company plans to maintain the additional manufacturing facility "in case of any potential disruption at the main plant." Demand for NewAge's products "is high," the release said, "especially during this pandemic, and NewAge needs to ensure capacity to produce more inventory."
"It's growth for the company and a fail-safe," Ken Baker, CEO of NewAge, said in the release. "Some of our customers have expressed concern about security of supply. Being able to make our products at multiple locations not only lets us increase our output but helps ease those concerns."
"The site will be used primarily to manufacture high purity tubing and molded assemblies for NewAge's AdvantaPure division, which supplies single-use fluid transfer systems to biopharm and pharmaceutical manufacturers," the release said.
NewAge ranked No. 52 in the most recent Plastics News survey of North American pipe, profile and tubing extruders, with $65 million in tubing sales.
NewAge plans to begin renovations at the new location this summer and hopes to move in, test and validate manufacturing equipment sometime in 2021.
The two building units have 46,000 square feet of manufacturing space and 3,000 square feet of offices. In addition to tubing extrusion machinery and injection presses, the manufacturing area will have clean rooms for manufacturing and packaging, and quality inspection areas, the release said. NewAge will inventory and ship products directly from the new location.
"Since this site is less than 15 minutes away from our headquarters … it's close enough that current team members will be able to shift to working at the new building, where they'll train new people," Baker added. "We're growing and have a lot of open positions right now that we need to fill."
The company expects to double manufacturing capacity for its AdvantaFlex TPE tubing in the short term, and long term, to triple capacity, the release said. Silicone tubing manufacturing capacity will also increase substantially.