CBD products maker Charlotte’s Web has signed a lease for a recently-constructed industrial building in the Colorado Technology Center (CTC) in Louisville, CO, where the company plans to expand its production, distribution and research and development capabilities, the firm announced in a release Thursday.

The planned opening of the 136,610-sq-ft cGMP-grade facility stems from an uptick in demand for CBD from consumers and national retailers, according to Charlotte’s Web. Work on the build out of the site is slated to begin in the third quarter of this year and reach completion in two years. Charlotte’s Web said the project is currently in the internal engineering phase.

“Production and inventory growth have been dramatic this year following the company’s record 675,000-lb hemp harvest during 2018, which was more than ten times larger than 2017. Our capacity build is required to support sales forecasts as multiple national retailers continue to roll out Charlotte’s Web products,” the company’s chief operating officer, Stephen Lermer, said in a statement. “As we have increased acres planted by 187% for the 2019 season, we will make quick use of the expanded facilities as we initiate operations early next year.”

New production equipment is under development for use in the site, according to the firm, that will boost the site’s efficiency. Once completed, the site is expected to feature the “most technologically advanced” extraction solutions.

“Many of the extraction technologies employed in our sector are decades old. In our new facility, we will be incorporating the latest in extraction and post-processing refinement technology that enables differentiated end-products with unique characteristics,” Lermer said. “Our expanded R&D focus in this facility y will also lead is to future innovation that will ensure we remain the leader in production technology. Strategically, Louisville is a prime location for us midway between our current Boulder and Denver operations. Additionally, this gives us access to a wider aggregate region from which we can source top employee talent.”

The company’s current manufacturing footprint covers 40,000 sq ft.

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