Corning is expanding the operations it recently acquired from Pirelli, now the Corning Optical Technologies Italia (OTI) unit.
The company's board of directors approved sinking $150 million into the business unit to increase production of lithium niobate modulators, pump lasers, certain specialty fibers, and fiber gratings. These products are all elements of Corning's portfolio of optical networking products.
The recent purchase of OTI's products and technologies provided a strategic addition to Corning's optical layer plan, particularly as it pertains to long-haul applications. By adding the lithium niobate modulators, Corning has a complete line of high-data-rate, long reach transmission components, including modulators with integrated attenuators. The capabilities in 980 nm pump lasers for submarine use complement Corning Lasertron's terrestrial 980 nm pump competencies. Corning OTI's specialty fiber and fiber gratings used in amplification and dispersion compensation further Corning's capabilities.
The capital investment infusion will also go toward a new production facility in San Donato, Italy. Close to Milan, the new facility is expected to be fully operational and its employment level doubled by the end of 2001.