More news
American Fiber Optic Group Inc., a Wholly Owned Subsidiary of Capstone Technologies Group Inc. (CBLY-OTC), Announces update on their new state-of-the-art Manufacturing Facility
PALMETTO, FL -- (Marketwired) -- 12/08/16 -- American Fiber Optics Group, Inc.,a wholly owned subsidiary of Capstone Technologies Group Inc. (OTC PINK: CBLY), is currently in the process of building an optical fiber preform manufacturing facility to be located in a strategic location that has existing unused manufacturing facilities, such as the Detroit, Michigan area or another suitable location. This facility will be a state-of-the-art facility using USA technology to manufacture optical fiber preforms that will be used to manufacture fiber optic cable for US and Worldwide markets. The AFOG facility will have many advantages over other main competitors in Japan and China due to the availability of an existing skilled workforce abandoned by industries leaving the area, lower tax restrictions, unused manufacturing facilities and a USA jobs oriented atmosphere in the new US Government administration in 2017.
Fiber Optic Cable is in high demand with annual growth rates in excess of 11%. The current marketplace is struggling to keep up with this demand as the need for more preforms, which is the initial component used to manufacture optical fiber, is increasing as markets around the world demand more fiber optic cable. Preforms are the most attractive portion of the optical fiber cable supply chain demonstrating about 70% of the profit made in the optical fiber industry. This part of the market is the most attractive portion of a very strong growth industry with high margins, few competitors, high barriers to entry and an excellent outlook for future growth.
The initial business model for AFOG is to begin building in stages, a 20 million kilometer per year preform capacity plant with a total of 10 million kilometers coming online at the end of year one with a steady increase up to 20 million kilometers of preforms by the end of year two. In doing this AFOG will employ a local workforce of over 100 local salaried and hourly employees with an estimated payroll of in excess of $9,000,000 per year at full capacity. This facility will be able to generate gross sales revenues of over $80,000,000 per year when at full capacity. This will be a boon to the local community, as more revenue will be realized by businesses providing services to this booming manufacturing industry and its employees.
After the initial two-year growth period AFOG will continue to expand its preform operation in to drawing and selling Fiber which will require addition investment and job opportunities and increase revenues upwards of $144,000,000. AFOG is already looking at partnering opportunities for expansion with other industry giants in the Fiber Optical Cable industry that will drive additional manufacturing facility requirements and promote additional job growth.
Completion date is scheduled for December 31, 2017.
