fbpx

Beverage manufacturer to invest $200M in new Lehigh Valley site

Keurig Dr. Pepper said it would invest about $200 million to develop a production and warehouse site in Upper Macungie Township that would employ nearly 400, according to a news release.

The project is at Park 100 Logistics Center, a two-building industrial site under construction near Route 100 in Upper Macungie that once served as a Kraft-Heinz plant.

Keurig Dr. Pepper will move into Park 100, a two-building logistics site in Upper Macungie Township. This file photo shows the first building, completed in April. (Submitted) –

The site occupies 92 acres on Industrial Boulevard.

Combined, the two buildings will create a 1,541,280 square foot manufacturing, warehouse and distribution facility. The company said it plans to create at least 378 full-time jobs over the next three years and invest at least $219.7 million in the project. The costs include leasehold improvements, building infrastructure, equipment acquisition, computer equipment, training and furniture.

Katie Gilroy, director of communications for Keurig Dr. Pepper, confirmed the company leased a parcel of land near Allentown, where it plans to adapt an existing warehouse and build a new manufacturing facility. The warehouse is at 7350 Industrial Blvd. and the manufacturing site will be at 7356 Industrial Blvd.

Those two buildings will be connected by a tramway that will deliver pallets from the manufacturing facility to the warehouse, she said in a statement. Warehouse operations are expected to begin by the end of this year. The company will provide an update on manufacturing at a later date, she said.

The company received some state funds to help with the investment, including a proposal from the Department of Community & Economic Development for a $1.5 million Pennsylvania First grant, $170,100 for worker training and $1.134 million in tax credits the company receives after it adds the new jobs.

Keurig Dr. Pepper said the facility would help the company optimize its logistics footprint in the Northeast by providing large-scale warehouse operations. The company has annual revenue in excess of $11 billion and dual headquarters in Burlington, Massachusetts and Plano, Texas. The company formed with the 2018 merger of Keurig Green Mountain and Dr. Pepper Snapple Group.

The Governor’s Action Team coordinated the Upper Macungie project.
QEI Construction Group of Harrisburg is the builder. Ridgeline Property Group of Atlanta, Ga., is the owner.

“We have a backlog of prospects that want to be in the market,” said Don Cunningham, president and CEO of Lehigh Valley Economic Development Corp., an organization that helps companies find sites and works with government groups to lure companies to the valley. “The growth of manufacturing and food and beverage that this is a part of, we’ve been working hard on for years. We have a steady stream of natural producers that want to be in the market.”

Cunningham said he has been involved with this project since the beginning of the year.

 

Brian Pedersen
Reporter Brian Pedersen covers construction, development, warehousing and real estate and keeps you up to date on the changing landscape of our community. He can be reached at brianp@lvb.com or 610-807-9619, ext. 4108. Follow him on Twitter @BrianLehigh.

Business Journal Events

2019 Fastest Growing Companies Awards

Wednesday, October 23, 2019
2019 Fastest Growing Companies Awards

2019 Icon Honors

Wednesday, November 06, 2019
2019 Icon Honors

2019 Business of the Year Awards

Wednesday, December 04, 2019
2019 Business of the Year Awards