In late May, Pennsylvania-based manufacturer NewAge Industries officially opened its first European production facility in Coevorden. The Netherlands Foreign Investment Agency (NFIA) and the Investment and Development Agency for the Northern Netherlands (NOM) assisted the company in the process of setting up their business in the Netherlands. ‘We took a risk, but we did it because it just felt right.’
NewAge Industries is a leading independent, employee-owned manufacturer of fluid transfer systems that produces high-quality tubing, hoses, fittings and clamps, for a variety of industries. ‘Simply put, we specialize in fluid transport solutions’, says Director of Manufacturing Development Maurice LeCompte. ‘We’ve been around for about 70 years and active in Europe for about 25 years. Our new facility in Coevorden will focus primarily on the biomedical sector for our customers in Europe and Asia.’
Five days, 25 locations
The decision to open a new facility in the Netherlands was made during the height of the COVID pandemic. ‘We already had a significant customer base in Europe, working with companies like Merck, for example’, LeCompte says. ‘But at that time, you couldn’t get supplies anywhere, transport was limited. I think the pandemic made everyone understand the importance of having a local source of supply. The Netherlands seemed like the obvious choice for us, because of its central location and it being a major transport hub for the rest of the world.’
Together with consulting firm Buck Consultants International, a list of possible sites throughout the country was made in advance. 'It was five completely jam-packed days with appointments with various economic development agencies and 25 different site visits. It felt like a big blur," LeCompte says with a laugh. 'From Schiphol we drove straight to our first appointment with Wubbo Everts and the NOM and looked at a few locations in the northern Netherlands.'
But the location in Coevorden wasn’t on the initial list. ‘That was actually a last-minute suggestion from Wubbo. We got there and met with Jan Feijen, the property owner and a local entrepreneur. He’s also a generational family owner, just like our owner, Ken Baker. Both of them are fairly unconventional individuals, so they had a lot in common. Jan is also actively involved in the community, and that felt refreshing because many companies usually aren’t. That was important to us because we wanted to be a part of the community too.’ LeCompte admits a local tasty treat called “ontbijtkoek” may have also played a role in making the decision: ‘It’s so delicious, I have a piece every day now!’
"We're a zero-landfill company, and we're working to get all of our customers on board with the same commitment."
Maurice LeCompte, Director of Manufacturing Development NewAge Industries
Electricity grid
‘It wasn’t the prettiest building, but that wasn’t a requirement’, LeCompte says jokingly. ‘But it did meet all the other requirements, except for the power, which was something we needed a lot of. Wubbo called me the day after I got back and said there was a brand-new substation a few miles from the location and if we moved on it immediately, they could supply us with the power we needed. The only caveat was that they needed a deposit to connect the power lines to our location.’
‘We took a risk, but it felt right. We hadn’t even made a deal with the owner yet, but we felt we could. So, we took a leap of faith and things worked out. If didn’t work out, well, I guess we would’ve made someone else very happy with a free power grid connection’, LeCompte laughs.
"NewAge Industries is a perfect fit because they bring highly specialized products and expertise to the region."
Wubbo Everts, project manager Foreign Direct Investment NOM
Nothing but benefits
“So what was the process of setting up shop in the Netherlands like? There were a lot of hoops we had to jump through’, LeCompte shares. ‘In the US, you can basically incorporate a business in a single day. In the Netherlands, it took us five months. Getting a Dutch bank account took almost 18 months. We received a lot of help from the NFIA and the NOM and working with Wubbo has been nothing but a benefit since day one. For a US company, I would recommend making an organization like the NOM your first stop, to make sure the whole process is as smooth as possible.’
‘Having gone through the entire process, I understand why it’s not as easy as it is in the US’, LeCompte continues. ‘They want to make sure you’re a legitimate business and not some sort of shell company. I believe our business structure was also a little confusing. When they asked us standard questions like who owns the company, we had to explain why there were 300 owners.’
30 millionaires in the company
Since 2019, NewAge Industries has been fully owned by its employees. ‘Our CEO Ken Baker is the second-generation owner and his heirs weren’t interested in taking over the business. But Ken didn’t want to sell the company to competitors or a private equity firm because that usually isn’t in the best interest of the employees’, LeCompte explains. ‘So in 2006, an Employee Stock Ownership Plan was established, on top of other benefits and a pension plan.’
When I started working here, we would brag that the company already had 30 millionaires’, LeCompte continues.’ These individuals aren’t executives, they are people who’ve been working at the company for a long time. Unfortunately, the laws are different in the Netherlands, so doing something similar here would mean our new Dutch employees would have to pay more taxes. So instead, we decided to supercharge their pension plans, to make sure they benefit from staying with us for a long time.’
Future Plans
‘We’re also very proud to be one of the few, if not the only certified B Corporation in our industry’, LeCompte continues. ‘You must go through a very stringent process to show you’re benefitting the community and the environment. We’re a zero-landfill company and we’re also trying to align all of our customers in doing the same. So of course, we want to do duplicate this here in Coevorden and make sure the silicon we use gets reprocessed the same way.’
‘We’re currently in the process of hiring around 60 to 70 new employees here and the future looks bright. We’re working with our existing customers, and now that we can provide a local source of supply, I’m sure more companies will be interested in working with us. We’re focusing on the biomedical industry right now, but we want to expand our product range here in the future. We bought this property to accommodate future growth, so that’s what we’re all working towards. We want to be around 100 years from now.’
'Right now we are in the process of hiring about 60 to 70 new employees and the future looks bright. We are working with our existing customers and now that we can offer a local source of supply, I am sure more companies will be interested in working with us. Right now we are focusing on the biomedical industry, but we want to expand our product range here in the future. We bought this property to enable future growth, so we are all working hard on that. We want to still be here in 100 years.'
Value, not volume
Project Manager Foreign Direct Investment Wubbo Everts was involved on behalf of NOM in guiding NewAge Industries in setting up their company in the Northern Netherlands: 'As part of our new FDI strategy, we are looking for companies that really add value to the already existing ecosystem. NewAge Industries is a perfect fit because they bring highly specialized products and expertise to the region. They are both socially and environmentally responsible and offer nearly 70 new jobs with good pension plans.'