Corning Announces New Capacity Investments
21 Julho 2010 - 5:15PM
Business Wire
Corning Incorporated (NYSE:GLW) announced today that its board
of directors has approved a capital expenditure plan to expand the
company’s LCD glass and Gorilla® glass manufacturing in response to
strong market demand.
The company will invest approximately $800 million to construct
a new LCD glass substrate facility in the People’s Republic of
China. With the support of the Beijing municipal government,
Corning will locate the new facility in the Beijing Digital TV
Industry Park within the Beijing Economic Technological Development
Area. The manufacturing plant will have up to Generation 8.5
glass-melting and finishing capabilities. Groundbreaking is planned
for September of this year, with production slated to begin in the
first half of 2012.
Corning’s investments will also include construction projects in
other regions to expand capacity for two of its flagship products:
EAGLE XG® LCD glass substrates and Gorilla glass. As previously
announced, the company has restarted an expansion project at its
Taichung (Taiwan) LCD glass facility and is ramping up idled
capacity at its facility in Shizuoka, Japan to produce Gorilla
glass for various applications. The company now intends to expand
further in Taichung under the new capital expenditure plan, with
additional capacity projected to come on line in the first half of
2012.
“These investments will position Corning to capture significant
new sales opportunities from rapidly increasing demand for our
Gorilla glass, while continuing to meet the demand for our EAGLE XG
products,” Wendell P. Weeks, chairman and chief executive officer,
said. Corning expects Gorilla glass sales to exceed $200 million
this year in its Specialty Materials segment, and estimates that
sales could reach approximately $1 billion annually by 2011.
Gorilla glass is a protective cover glass that provides superior
damage and scratch resistance on hundreds of models of handheld
devices and smart phones.
“The need for additional Gorilla glass capacity is based in part
on the product’s new application as a TV cover glass,” Weeks
explained. “Gorilla glass has already been embraced by information
technology and handheld device makers, and the addition of the TV
cover glass application creates a tremendous opportunity for
further growth.”
LCD substrate growth
“We continue to forecast strong growth for LCD glass for the
next several years. This growth will be driven primarily by
continued market penetration of LCD televisions, with significant
gains in Asia and South America, and an accelerated technology
replacement cycle in more mature global markets. Therefore, we are
making the appropriate capacity investments to take advantage of
this projected demand,” said James P. Clappin, president, Corning
Display Technologies, Asia.
“China is not only one of the world’s leading consumers of LCD
televisions; it is also poised to become a major producer of LCD
panels for TV applications within the next several years. We are
excited to be a part of this emerging market,” Clappin added.
“China is quickly becoming a leader in LCD panel development,
and Corning will be well positioned to grow with the China market
through these capacity expansions,” noted Eric S. Musser, chief
executive officer of Corning Greater China. “These investments,
combined with our earlier announcement to expand production of auto
emissions-control products and establish a life science presence in
China, underscore Corning’s long-term commitment to the China
market.”
The company noted that continued higher-than-expected retail
demand for LCD televisions, laptops, and desktop computers has
resulted in an improved outlook for these consumer electronic
products throughout the remainder of the year. Therefore, Corning
now believes that annual LCD glass demand could be at the higher
end of its forecasted range of 2.9 billion square feet to 3.1
billion square feet this year.
As a result of these investments, Corning has increased its
forecast of capital expenditures to approximately $1.2 billion this
year, up from its previous estimate of $1 billion. The company also
expects that capital expenditures in 2011 will be higher than this
year’s current forecast. Corning will provide additional details on
its investments during its second-quarter financial results
investor conference call on Wednesday, July 28.
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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