Ceased Operations May15, 2009

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Message: Anybody can help me out here?

My understanding, based on several specific conversations about this topic is again, that they are prepared for expansion. 

The production numbers that Paul quoted are based on 2) 12 hour shifts, five days a week.  Capacity could conceivably be increased 28% by running 7 days a week. 

Currently the one piece of equipment that limits production capacity is the centrifuge.  The addition of a second centrifuge in the existing production line could nearly double capacity.

The building is currently laid out for a maximum of four production lines to be installed in the existing space.  That means that with additional capital investment in the existing building, the capacity could be increased to as much as 75,000 kilos per month, or 900,000 kilos per year on a five day work week.  At an average estimated price per kilo of $150, that is $135M annual revenue potential using the existing facility.

My understanding is that there is a plan in place for increasing production capacity as needed, with no immediate need for expansion of the building.

I hope this clarifies my previous response.

-zties

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