Corning Incorporated (NYSE: GLW) today announced that its board of directors has approved a capital expenditure plan of approximately $170 million to further increase the capacity of its clean air products plant in Shanghai, China.
The investment will be used to expand the Corning Shanghai Company Limited (CSCL) facility and to increase its capacity to manufacture emissions control substrates for light-duty (automotive) passenger vehicles. This expansion is expected to be complete and operational in the third quarter of 2013.
Mark Beck, senior vice president and general manager, Corning Environmental Technologies, said, “Global sales of automobiles, particularly in China and across Asia, are forecasted to grow steadily over the next several years, increasing demand for Corning’s advanced substrates. Strict emissions regulations around the world are driving vehicles to use more substrates than before and to use advanced substrates. This significant investment will help us to meet the growing demand. It also demonstrates our commitment to improved service to our customers and to maintaining a leadership position in the emissions control industry.”
“Corning has been investing in China for more than 25 years,” said Eric S. Musser, chief executive officer of Corning Greater China. “Today’s announcement, the third expansion of our automotive substrate facility, marks another important milestone in our commitment to China. As the first substrate manufacturer to enter China 10 years ago, we are proud that we continue to support China’s automotive industry through a combination of strategic investments, innovative technologies, and values-based market leadership.”
Corning Shanghai Company Limited, which is wholly owned by Corning Incorporated, is a state-of-the-art, high-tech emissions control substrate facility that first began shipping product in early 2001. Corning first expanded the facility in 2007 and last year announced a $125 million second expansion of the facility. Production from this recent expansion is expected to begin shipping in the second half of 2012. In addition to manufacturing advanced substrates, CSCL also includes sales, marketing and engineering support that provide world-class service for Corning customers in China and throughout Asia.
Corning is a leading supplier of advanced cellular ceramic substrates and diesel particulate filters for the world's major manufacturers of gasoline and diesel engines. The company invented an economical, high-performance, cellular ceramic substrate in the early 1970s that is now the standard for catalytic converters worldwide. In 1978, Corning developed the cellular ceramic particulate filter to remove soot from diesel emissions. Corning continues to leverage its expertise in materials, processes and manufacturing to develop advanced ceramic substrates and diesel particulate filters that help meet demanding mobile emissions requirements.
Forward-Looking and Cautionary Statements
This press release contains “forward-looking statements” (within the meaning of the Private Securities Litigation Reform Act of 1995), which are based on current expectations and assumptions about Corning’s financial results and business operations, that involve substantial risks and uncertainties that could cause actual results to differ materially. These risks and uncertainties include: the effect of global political, economic and business conditions; conditions in the financial and credit markets; currency fluctuations; tax rates; product demand and industry capacity; competition; reliance on a concentrated customer base; manufacturing efficiencies; cost reductions; availability of critical components and materials; new product commercialization; pricing fluctuations and changes in the mix of sales between premium and non-premium products; new plant start-up or restructuring costs; possible disruption in commercial activities due to terrorist activity, armed conflict, political or financial instability, natural disasters, adverse weather conditions, or major health concerns; adequacy of insurance; equity company activities; acquisition and divestiture activities; the level of excess or obsolete inventory; the rate of technology change; the ability to enforce patents; product and components performance issues; retention of key personnel; stock price fluctuations; and adverse litigation or regulatory developments. These and other risk factors are detailed in Corning’s filings with the Securities and Exchange Commission. Forward-looking statements speak only as of the day that they are made, and Corning undertakes no obligation to update them in light of new information or future events.
About Corning Incorporated
Corning Incorporated (www.corning.com) is the world leader in specialty glass and ceramics. Drawing on 160 years of materials science and process engineering knowledge, Corning creates and makes keystone components that enable high-technology systems for consumer electronics, mobile emissions control, telecommunications and life sciences. Our products include glass substrates for LCD televisions, computer monitors and laptops; ceramic substrates and filters for mobile emission control systems; optical fiber, cable, hardware & equipment for telecommunications networks; optical biosensors for drug discovery; and other advanced optics and specialty glass solutions for a number of industries including semiconductor, aerospace, defense, astronomy and metrology.