IPG PHOTONICS CORP 10-K

ITEM 2. PROPERTIES Our significant facilities at December 31, 2022 include the following: Location Owned or Leased Lease Expiration Approximate Size (sq. ft.) Primary Activity Oxford, Massachusetts Owned 550,300 Diodes, components, final assembly, complete device manufacturing, R&D, administration Burbach, Germany Owned 553,500 Optical fiber, components, final assembly, complete device manufacturing, R&D, administration Leased May 2027 14,348 Complete device manufacturing Fryazino, Russia Owned 496,000 Optical fiber, components, final assembly, complete device manufacturing, R&D, administration Leased May 2023 - November 2026 172,300 Components, complete device manufacturing Marlborough, Massachusetts Owned 389,800 Components, systems manufacturing, applications, sales, R&D, administration Minsk, Belarus Owned 372,100 Manufacturing of cabinets and mechanical subcomponents Davenport, Iowa Owned 160,300 Systems integration, sales, administration Our corporate headquarters is in Marlborough, Massachusetts. As of December 31, 2022, we occupied more than 3.4 million square feet of facilities worldwide. Of this we own 2.9 million square feet and lease 0.5 million square feet of building space, of which the majority is used for manufacturing. We operate four principal manufacturing facilities for fiber lasers, laser systems, fiber amplifiers, and related optical and mechanical components, which are located in the United States, Germany, Russia and Belarus. We conduct our major research and development activities in Oxford and Marlborough, Massachusetts and Burbach, Germany. We own additional facilities and land for various purposes, such as sales and support and applications labs. We believe the existing facilities are in good operating condition and are suitable for the conduct of our operations. The productive capacity at our current facilities is substantially utilized. We plan to continue the expansion of our manufacturing operations in Germany, the United States, Italy and Poland to meet the demand for our products and our sales and support needs. In response to the risks from the Russia-Ukraine conflict, we have been executing on plans to reduce our reliance on our Russia and Belarus operations by adding capacity in other countries.