FiberCore Gets Expansion Bucks

$27 million from the DKB Bank of Germany and will bring the total investment in the new plant to approximately $50 million

December 7, 2001

2 Min Read

CHARLTON, Mass. -- FiberCore, Inc. (Nasdaq: FBCE), a leading manufacturer and global supplier of optical fiber and preform for the telecommunication and data communications markets, today announced that it received a financing commitment for the second phase of capacity expansion at the Company's facilities in Jena, Germany. This phase of the expansion represents an additional investment of Euro 30 million, or approximately US$27 million, and will bring the total investment in the new plant to approximately US$50 million. The primary financing for Phase 2 is being provided by the DKB Bank, Germany. The financing package includes approximately Euro 23 million, in a combination of long-term loans through DKB and grants from agencies of the German government. FiberCore will contribute the balance of the funds, or approximately Euro 7 million, predominantly from the German facility's operating cash flow over the course of the expansion period. The parties expect to finalize and close on the transaction early in 2002, with the actual plant expansion to occur during 2002 and 2003. "This round of financing for FiberCore Jena is a major milestone for the Company," commented Dr. Mohd A. Aslami, President and CEO. "We are currently on plan to complete Phase 1 of our new 120,000 sq. ft. state-of-the-art Jena facility, which we began in early 2001. Production is set to begin early in the new year. A major portion of the first phase of the expansion dealt with multimode capacity. The second phase of the expansion will focus on additional preform and multimode fiber capacity, with some investment for other products as well. This is expected to double the capacity of multimode fiber to over 500,000 kms in 2002 and bring the new Jena plant to its full capacity in 2003."FiberCore Inc.

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