GenTek Announces Major Telecom Expansion
19 October 2000
GenTek Announces Major Telecom Expansion
Strategy Addresses Unprecedented Market Demand for TrueNet(TM)
and Fiber Optic Product Lines
HAMPTON, N.H., Oct. 19 GenTek Inc. and Krone,
GenTek's principal telecommunications subsidiary, announced today a $40
million expansion plan for their copper and fiber optic cable manufacturing
facilities. The companies project this investment will enable these facilities
to generate some $300 million in annual revenue by 2003, up from about $70
million in 1999. Much of this growth is attributable to Krone's TrueNet(TM)
structured cabling system, the only advanced local area network (LAN) solution
on the market today that maximizes data throughput, enabling a network to
deliver the bandwidth for which it was designed.
"This expansion is essential to Krone's growth strategy and substantiates
our efforts to build a leading network architecture business," said Paul M.
Montrone, chairman of GenTek. "In addition to growth in many of our other
leading-edge telecommunications products, demand for TrueNet has been
tremendous. Our enhanced throughput message, backed by proprietary diagnostic
and product technology, is clearly changing the way the industry thinks about
network architecture.
"To date, TrueNet has been specified by many of the world's leading
technology firms," he added. "We expect that Vigilant Networks, our new
network diagnostic business, will further accelerate TrueNet deployment by
demonstrating the concrete benefits of our throughput technology."
GenTek's facility in Sidney, Neb., which primarily produces products for
telecommunications service providers and enterprise local- and wide-area
networks, will add capacity devoted primarily to advanced data cables to
support TrueNet and other broadband applications.
GenTek's fiber optic facility in North Bennington, Vt., also will be
expanded, adding capacity primarily to support enterprise fiber-to-the-desk
and fiber backbone systems.
Phase one of both expansions will be completed in the fourth quarter, with
final build-out scheduled for the first quarter of 2001.
GenTek Inc. is a technology-driven manufacturer of telecommunications
equipment and other products. Additional information regarding GenTek can be
found on the Web at http://www.gentek-global.com.
Krone is a manufacturer of copper and fiber optic networking solutions for
public and private communications networks. A worldwide network of
sales/support offices and manufacturing facilities positions Krone to be the
vendor of choice for multinational customers wishing to standardize on one
solution around the world. Additional information regarding Krone can be found
on the Web at http://www.kroneamericas.com.
This announcement includes forward-looking statements. GenTek has made
these forward-looking statements based on its current expectations and
projections about future events. Although GenTek believes that its assumptions
made in connection with the forward-looking statements are reasonable, no
assurances can be given that its assumptions and expectations will prove to
have been correct. These forward-looking statements are subject to various
risks, uncertainties and assumptions. GenTek undertakes no obligation to
publicly update or revise any forward-looking statements, whether as a result
of new information, future events or otherwise. In light of these risks,
uncertainties and assumptions, the forward-looking events discussed in this
announcement might not occur.
Media Contact: Gia Oei, (603) 929-2489
Gia.Oei@latonaassociates.com
Investor Contact: Matthew Murphy, (603) 929-2376
Matt.Murphy@latonaassociates.com