NewAge Expands To Meet Pandemic-Driven Demand

June 17, 2020
NewAge Industries closes a deal to buy two building units at a location within seven miles of its southeastern Pennsylvania headquarters.

NewAge Industries buys two buildings near its southeastern Pennsylvania headquarters to expand capacity.

NewAge Industries closes a deal to buy two building units at a location within seven miles of its southeastern Pennsylvania headquarters. The company will renovate the space, then purchase and install new tubing extrusion equipment and presses for injection molding. The site will primarily manufacture high purity tubing and molded assemblies for NewAge’s AdvantaPure division, which supplies single-use fluid transfer systems to biopharm and pharmaceutical manufacturers.

Demand for its products is high especially during this pandemic, according to NewAge, and the company needs to ensure capacity to produce more inventory. NewAge says it also wants to maintain an additional manufacturing facility in case of any potential disruption at the main plant.

“It’s growth for the company and a fail-safe,” says Ken Baker, NewAge Industries’ CEO. “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 two building units consist of 46,000 square feet of manufacturing space with an additional 3,000 square feet of offices. The manufacturing area will house tubing extrusion machinery, injection molding presses, clean rooms for high purity product manufacturing and packaging and quality inspection areas. Quality department personnel and department supervisors will use the office space. NewAge plans to inventory and ship products directly from the new location.

“Since this site is less than fifteen minutes away from our headquarters, there are efficiencies to be gained,” says Baker. “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, too. We’re growing and have a lot of open positions right now that we need to fill.”

Renovations at the new location will begin this summer with additional remodeling extending into next year. NewAge anticipates moving in, testing and validating its manufacturing equipment during 2021, according to the company. The company expects to double manufacturing capacity for its AdvantaFlex TPE tubing in the short term and triple capacity in the long term. Silicone tubing manufacturing capacity will also increase substantially.

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