Corning Incorporated (NYSE: GLW) today announced that its board of directors has approved a capital expenditure plan of approximately $250 million to increase manufacturing capacity of the company’s diesel emissions control products. The majority of the investment will increase capacity at the Erwin diesel facility near Corning, which manufactures large ceramic substrates and filters for heavy-duty diesel engine, truck, construction, and agricultural equipment manufacturers worldwide.
“Important heavy-duty regulations in China and Europe, as well as for non-road vehicles, take effect over the next two years which could double demand for our products by 2017,” said Mark Beck, executive vice president, Corning Environmental Technologies & Life Sciences Business Group. “These investments in our manufacturing capabilities demonstrate our commitment to ensuring a reliable supply of next-generation diesel products to our global customers for years to come.”
Corning’s diesel plant in Erwin began manufacturing large substrates in 2004 and now also produces particulate filters for heavy-duty applications. The company has already completed two facility expansions to accommodate global market growth.
Corning said spending on the $250 million project will occur over a three-year period and will not change the company’s previous capital spending forecasts for 2013 and 2014. The latest project is expected to be operational in 2015 and to create an additional 250 new full-time positions if market demand grows as expected.
“The expansion of this facility is great news for New York – a testament to our world-class workforce and further proof of our ability to compete for global jobs and business,” New York Gov. Andrew M. Cuomo said. “We are extremely pleased that Corning has decided to make a major investment to expand their capacity here in Erwin, and look forward to them growing and thriving in the region.”
“Governor Cuomo has had a laser-like focus on opening New York’s doors to business and creating an environment where major companies such as Corning can invest and grow,” said Kenneth Adams, Empire State Development president, chief executive officer and commissioner. “New York state’s partnership with Corning remains strong and we were pleased to work as a team with our state and local partners to make this investment a reality.”
Corning’s expansion plan also includes an investment in new heavy-duty finishing operations at Corning (Shanghai) Co. Ltd., Corning’s wholly owned substrate facility in Shanghai, China. Adding these capabilities marks Corning’s first heavy-duty diesel capacity investment in Asia.
The company has secured land in Shanghai for future expansion in China as the global heavy-duty diesel market grows, as well as other corporate needs. Environmental regulations in emerging markets such as India and China are expected to drive additional capacity needs that would require constructing a new facility in this location to meet future demand.
“Corning has been investing in Greater China for more than 30 years and was the first substrate manufacturer in China,” said Li Fang, president and general manager, Corning Greater China. “As China enforces tighter emissions standards, it will become a significant market for clean-air solutions. Preparing for a future manufacturing facility here solidifies China’s future as a major market for and manufacturer of heavy-duty emissions control products.”
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 the first high-performance cellular ceramic substrate in the early 1970s, setting the standard for catalytic converters worldwide. Corning also developed the cellular ceramic particulate filter in 1978 to remove soot from diesel engine emissions.
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 more than 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.