The phrase "increase production capacity" is correct and usable in written English.
You can use it to refer to an increase in the ability of a company or organization to produce goods or services. For example: "The company invested in new machinery to increase production capacity."
It is unlikely that companies will spend capital to increase production capacity if existing facilities are not being fully used.
The Toyota Motor Corporation said it would increase production capacity in France and Britain to expand its sales in Europe.
To alleviate fears over the supply of oil in the future, one of the main factors behind the rally in oil prices, Saudi officials said the kingdom would be able to increase production capacity in the coming years.
The pool of money provides incentive for drug makers to create vaccines tailored for use in the developing world as well as to increase production capacity to accommodate the need.
Company executives said the expansion, helped by $22 million in state incentives, would add 300 jobs and increase production capacity to 300,000 cars a year from 240,000.
In a statement on Friday, he asserted the Saudis have "the ability to increase production capacity by two million barrels a day right now," and said an increase in production of one million barrels would reduce the price of gasoline by 60 cents per gallon.
As technology and increased production capacity make it cheaper to build products based on older specifications, companies lower the prices on existing products while introducing new features and better performance to entice high-end buyers.
"Together with our partners and industry we have to ensure that we can meet the need by increasing production capacity, encouraging new suppliers and supporting the development of innovations in product development".
The race is on, as many American, European and Asian competitors are increasing production capacity, investing abroad and pouring more money into R&D to improve their products.
