Corning to Invest in Gen 10.5 LCD Glass Substrate Facility in Hefei

Corning to Invest in Gen 10.5 LCD Glass Substrate Facility in Hefei

Corning to Invest in LCD Glass Facility in Hefei

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Corning to Invest in Gen 10.5 LCD Glass Substrate Facility in Hefei
Corning to Invest in Gen 10.5 LCD Glass Substrate Facility in Hefei
CORNING, N.Y. | Corning Incorporated | December 01, 2015
Company signs agreement to supply Gen 10.5 substrates to BOE; extends supply agreement with BOE on Gen 8.5 and smaller gen sizes

Corning Incorporated (NYSE:GLW) announced today that with the support of the Hefei government, Corning will locate a Gen 10.5 glass manufacturing facility adjacent to the BOE Technology Group Co. Ltd. (BOE) plant in the Hefei XinZhan General Pilot Zone in Anhui Province, China. Glass substrate production from the new facility is expected to support BOE’s plan to begin mass production of LCD panels for large-size televisions by the third quarter of 2018.

The total investment for the facility is approximately $1.3 billion. Corning’s investment will be composed primarily of equipment and precious metals. Corning’s net outlay of $460 million, which is net of government and commercial incentives, is expected to be approximately $290 million in cash and $170 million of currently owned precious metals.

As part of this investment, Corning and BOE have entered into a long-term supply agreement that commits BOE to the purchase of Gen 10.5 glass substrates from the Corning manufacturing facility in Hefei. BOE also has extended its long-term supply agreement with Corning to purchase glass substrates for Gen 8.5 sizes and below.

The market for large-size TVs is projected to grow at a compound annual growth rate of more than 20%. This investment will enable Corning to become the first manufacturer of TFT-grade Gen 10.5 substrates. At 2,940 mm x 3,370 mm, Gen 10.5 will be the largest LCD glass substrate available, providing the most economical cuts for 65-inch and 75-inch TVs. The Gen 10.5 substrates manufactured at the Hefei facility will use Corning® EAGLE XG® slim glass.

“Corning is pleased to extend its close relationship with BOE and to demonstrate our continued commitment to China -- the world’s largest TV market,” said James P. Clappin, president, Corning Glass Technologies. “As demand for large-size LCD TVs accelerates, we are supporting this trend by utilizing our superior fusion technology to deliver the industry’s largest glass substrates to a key customer.”

“Corning is confident that we can pace the investment with BOE’s expansion, keeping our supply balanced with our demand when this facility begins producing glass approximately three years from now,” said John Zhang, general manager of Corning Display Technologies.

Corning and BOE have worked together since 2004 when BOE established its first Gen 5 panel fab in Beijing. This relationship extended to Corning's introduction of Gen 8.5 melting and finishing capacity in Beijing in 2013, alongside BOE’s Gen 8.5 panel fab in Beijing Economical and Technological Development Zone.

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.

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About Corning Incorporated
Corning ( is one of the world’s leading innovators in materials science. For more than 160 years, Corning has applied its unparalleled expertise in specialty glass, ceramics, and optical physics to develop products that have created new industries and transformed people’s lives. Corning succeeds through sustained investment in R&D, a unique combination of material and process innovation, and close collaboration with customers to solve tough technology challenges. Corning’s businesses and markets are constantly evolving. Today, Corning’s products enable diverse industries such as consumer electronics, telecommunications, transportation, and life sciences. They include damage-resistant cover glass for smartphones and tablets; precision glass for advanced displays; optical fiber, wireless technologies, and connectivity solutions for high-speed communications networks; trusted products that accelerate drug discovery and manufacturing; and emissions-control products for cars, trucks, and off-road vehicles.