Rubicon Technology, Inc. (RBCN) announced that it released additional details related to the company's two year capacity expansion plan which was outlined on its third quarter earnings conference call last month.
The company is adding production capacity as its existing facilities are nearing maximum capacity and demand for sapphire substrates, particularly for use in the LED industry, is expected to be strong in coming years.
The company stated that both new facilities are expected to open by the end of next year. Equipment will then be installed and additional capacity will begin to come on-line. While additional capacity will begin coming on-line once the facilities are opened, the company estimates that it will take about twelve months from the opening for all machinery and equipment to be installed and operational. The company expects to spend between $60 and $65 million over the next two years on these two new facilities.
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