Business Beat: Aspen Aerogels chooses to maximize capacity in East Providence, not Georgia

Aspen Aerogels describes itself as helping to top energy infrastructure companies around the world design and operate more efficient, safe and profitable process facilities. Based in Northborough, MA, the company had been planning an expansion in Georgia – but they have pulled back from those plans and will focus on expanding their footprint in East Providence, where they are presently located at 3 Dexter Road.

Their statement to shareholders:

Thermal Barrier Supply and Statesboro Plant Project Update
To meet long-term aerogel demand, Aspen will invest to maximize capacity at its East Providence manufacturing facility and utilize a flexible supply strategy. The Company’s external manufacturing facility, which currently supports its Energy Industrial segment, can increase its aerogel production capacity.

Accordingly, Aspen has stopped construction of its planned second aerogel manufacturing facility in Statesboro, Georgia.  The Company will be assessing options to derive value from the assets in Statesboro, including relocating some equipment to upgrade and expand its existing plant. This path requires minimal capital.

For over 20 years, our aerogel technology platform has been used to solve some of industrial insulation’s toughest challenges. Our unique expertise in product engineering, format, and versatility is now fueling our strategic expansion into battery thermal barriers for e-mobility and battery energy storage systems.optimizes the performance and safety of electric vehicles and energy infrastructure assets.

For more than 20 years, global organizations have utilized Aspen’s engineering expertise and advanced aerogel technology to help solve challenges in resource efficiency, electrification, and sustainability.

Ricardo C. Rodriguez, Chief Financial Officer and Treasurer, noted, “In early 2023, pre-empting a reset in EV demand expectations, we decided to right-time the construction of our planned second aerogel manufacturing facility in Statesboro, Georgia and subsequently ramped up our external manufacturing capacity for our Energy Industrial business. In this most recent quarter, the external manufacturing model has fully demonstrated its ability to efficiently increase aerogel supply. We are confident that a capital-light and modular capacity plan provides the most efficient path to creating value. Looking ahead, we believe that we are fully funded by a strong balance sheet that enables us to play offense and evaluate a variety of opportunities, including additional paths for organic and inorganic growth, optimizing the capital structure, and returning capital to shareholders.”

There are currently 7 job openings in East Providence with others in Massachusetts and one hybrid position. There are over 400 employees with the company.

About Aspen Aerogels, Inc.
Aspen is a technology leader in sustainability and electrification solutions. The Company’s aerogel technology enables its customers and partners to achieve their own objectives around the global megatrends of resource efficiency, e-mobility and clean energy. Aspen’s PyroThin® products enable solutions to thermal runaway challenges within the electric vehicle (“EV”) market. The Company’s carbon aerogel initiative seeks to increase the performance of lithium-ion battery cells to enable EV manufacturers to reduce charging time and the cost of EVs. The Company’s Cryogel® and Pyrogel® products are valued by the world’s largest energy infrastructure companies. Aspen’s strategy is to partner with world-class industry leaders to leverage its Aerogel Technology Platform® into additional high-value markets. Aspen is headquartered in Northborough, Mass. For more information, please visit www.aerogel.com.