NewAge Industries announced that it had bought two building units in Southampton, Pennsylvania, with the US facilities set to house tubing extrusion equipment and presses for injection molding.
The products produced at the site will be sold through the company’s AdvantaPure division, which supplies single-use fluid transfer systems to the industry.
According to the company, the impetus to expand has been driven by the high demand for single-use products due to the novel coronavirus.
In addition, NewAge’s CEO, Ken Baker, outlined that the move was needed to ensure production could continue even if manufacturing was disrupted at its main facility.
Baker said, “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 buildings will hold 46,000-square-feet of manufacturing space, alongside 3,000-square-feet of offices.
The manufacturing area will hold the tubing manufacturing machinery, as well as clean rooms for product manufacturing and packaging.
NewAge expects the facilities to be ready for validation during 2021, whereupon the division’s capacity to manufacture tubing will be doubled in the short-term, and potentially tripled afterwards.
The company also noted that, with its headquarters located in the same area, it will be able to train new members of staff and enable current staff at the main manufacturing site to switch to the new buildings.