The company will take possession of the building early in the second quarter of 2002 and plans to start expanding its product development center later this year. Cima officials say they expect to have the new manufacturing facility completed and available forproduction by early 2004.
``Purchasing the building that houses our product development center proved to be the most cost-effective way to increase our manufacturing and product development capacity," says John M. Siebert, president and chief executive officer of Cima.
Siebert says by increasing manufacturing capacity and providing Cima's customers with back-up production capabilities, the second facility will enable the company to meet projected customer demand and requirements.
He estimates the total capital expenditures for this project, including the building purchase, will range between $20 to $30 million over the next two years. The company will pay for the project out of its cash reserves and cash flow. The company ended the second quarter with cash and available-for-sale securities of nearly $170million.
Just last month, the company spent about $3 million to add a second production line to its Eden Prairie facility, which more than doubles its manufacturing capacity from 220 million tablets a year to more than 500 million tablets a year.
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