Corning to Expand Clean-Air Auto Product Manufacturing in China
21 Julho 2010 - 5:00PM
Business Wire
Corning Incorporated (NYSE:GLW) announced today that its board
of directors has approved a capital expenditure plan to increase
manufacturing capacity in the company’s Environmental Technologies
and Life Sciences segments in the People’s Republic of China.
Corning will invest approximately $125 million to expand its
Corning Shanghai Company Limited automotive substrate facility and
approximately $40 million to build a new manufacturing and
distribution facility for Corning Life Sciences in the Yangtze
River Delta. Final site selection for the life sciences facility is
now underway. These investments will be part of Corning’s 2011
capital expenditures.
“China’s emerging economy and the strength of the Asian market
are critical to Corning’s long-term growth strategy,” said Peter F.
Volanakis, president and chief operating officer. “More than half
of our overall revenues are now generated in Asia, and China has
become the largest market for all our core products.”
Environmental Technologies
Corning’s expansion of its existing light-duty (automotive)
substrate manufacturing facility in Shanghai is expected to be
operational in the second half of 2012. The company began shipping
emissions-control products from the Shanghai facility in 2001 and
completed its first plant expansion in 2007.
Thomas R. Hinman, senior vice president and general manager for
Corning’s Environmental Technologies segment, said, “We anticipate
worldwide sales of automobiles will grow steadily over the next
several years, outpacing industry expectations. The growth of auto
sales in China, combined with the government’s commitment to
tighten auto emissions regulations, should lead to a very robust
business environment for the foreseeable future.” Hinman noted that
this production expansion will also allow the company’s U.S. and
European production facilities to better meet the increased demand
for clean-air products as both the North American and European auto
markets recover from the recent recession.
Corning Life Sciences
Corning will become the first U.S manufacturer of locally
produced labware products for the rapidly growing life sciences
market in China. Driven by a booming economy, China’s national
healthcare spending is expected to approach $250 billion annually
this year.
“The opportunity to establish a local presence in this growing
market is driving our investment decision,” explained Mark A. Beck,
senior vice president, Corning Life Sciences. He pointed out that
many of the consumable labware products require low-cost,
high-quality manufacturing and efficient local distribution
channels to be cost competitive in China. “We believe this new
facility will provide us with a distinct advantage for improved
market access and local distribution.”
Eric S. Musser, chief executive officer of Corning Greater
China, underscored the importance of China to Corning’s growth
strategy. “These investments build upon Corning’s nearly 30-year
history in China, and reinforce our strategy to locate facilities
in growth regions,” he said. “We remain committed to supporting
China’s development of key industries through a combination of
strategic investments, innovative technologies, and values-based
market leadership.”
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 150 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.
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