The total unit volume a facility or group of facilities can produce annually, using its highest practical operating mode.

Example 1:

Champion has over 1.4 million tons of uncoated paper capacity in the United States, and about 370,000 tons of capacity in Brazil. This substantial capacity base is a significant positive for the company, given the recent sharp upward momentum in uncoated paper prices. (Year 1994 -SIC 2621)

Explanation: This note indicates that Champion has the ability over the course of a year to produce almost 1.8 million tons of uncoated paper for markets around the world.

Example 2:

Pete's plans to build a 125,000 barrel brewery and an adjacent brewpub on the West Coast. (Year 1995-SIC 2082)

Explanation: Pete's has added a new facility to its company's total ability to produce beer. The facility has the capability of producing 125,000 barrels in one year.

Example 3:

World-wide demand for newsprint is about 38 million tons a year. Current capacity is about 40 million tons. (Year 2000-SIC 2621)

Explanation: The entire newsprint industry, around the world, is able to produce 40 million tons of newsprint in one year when plants are operated at standard, normal rates.

Example 4:

For 1997, Maanshan maintained an output capacity of 3.8 million tons of pig iron, 3.2 million tons of crude steel and 2.0 million tons of rolled-steel products. (Year 1997-SIC 3312)

Explanation: Maanshan's plants, operating at standard rates, are able to produce the stated amounts of pig iron, crude steel and rolled steel products over the course of the year.

Example 5:

In 1993, Kenworth added an estimated 35 units per day of capacity, or an incremental 38%, with the opening of its Renton, Washington, manufacturing facility, bringing its total capacity to an estimated 127 units per day. (Year 1993-SIC 3541)

Explanation: Kenworth is able to produce 127 tractors per operating day.