GLW Corning Inc

Dow Corning's New Strategies Help Electronics Companies to Grow MIDLAND, Mich., May 5 /PRNewswire-FirstCall/ -- A new business approach is helping electronics companies break into new markets and bring down barriers to innovation and growth. In today's tough business environment of rising costs, increased regulation and stiff competition, firms in the electronics sector are under mounting pressure to find new ways to grow. Complicating this has been a growing list of regulatory requirements in countries around the world that further add to their cost burden and slow speed-to-market. In response, Dow Corning, a global leader in silicon-based technology and innovation, has developed a business approach with solutions aimed directly at helping the electronics companies expand into new geographies or markets, manage capacity bottlenecks, and innovate. In addition to providing materials, technologies and services, Dow Corning now offers assistance ranging from access to a distribution network, contracted R&D services, an equipment alliance and process trouble shooting. It's an approach that has already helped companies around the world. As a result, one company was able to build an airbag sensor manufacturing plant in Mexico; another reduced distribution costs by 50%; and a third secured the funding needed to expand into North America. In the past, Dow Corning focused on developing and marketing silicon-based materials. Its staff now supports customers in multiple ways, offering expertise and building on more than 60 years of technology leadership and business experience. Speeding Capacity Expansion One global electronics company that produces airbag sensors needed to expand capacity to keep up with soaring demand. The decision was made to build a manufacturing operation in Mexico. Company executives recognized they could speed the process and ensure a top-quality new facility by replicating their own processes and best practices at their existing U.S. plant. The company produces airbag sensors that measure the weight of front-seat passengers and adjust the velocity, or de-activate, airbags accordingly to protect children. The U.S. government has mandated that a certain percentage of new vehicles sold next year be equipped with "smart" passenger-side airbags. In order to save time and maintain its focus on meeting fast-growing demand for its products, the company sought external support from a company with extensive experience managing manufacturing expansion projects. Dow Corning was selected to manage key elements of the project, including designing and implementing an unloading station, a bulk storage unit, and a centralized silicone delivery system. Its work extended throughout the life of the project, from the purchase and design of the site to the implementation and integration of the facility. Through broad-based engineering know-how and contractor management, both costs and time were reduced. Using proven delivery systems reduced challenges -- technical, financial and regulatory -- associated with the expansion project. Dow Corning's experience stems from the design, construction and operation of its own manufacturing operations and systems, as well as expertise in operational efficiency, HVAC, certification and maintenance. This approach allowed the electronics manufacturer to focus on its top priority -- creating products and technologies for its own customers. "I believe what set our approach apart is that we live with these types of business challenges every day, unlike consultants who provide advice and then depart," explained Tom Cook, Global Industry Executive Director for Dow Corning's electronics business. "The results were so good, the company asked us to retrofit the original plant in the U.S. as well." The Right Distribution Strategy Opens Markets Quickly One of the challenges companies face after market entry is identifying and contracting effective, well-connected distributors to help them build their businesses. To speed this process, Dow Corning has created a proprietary Distributor Effectiveness Model and "Best Partner" criteria that allow equipment companies to systematically compare distributor options. For electronics companies that need equipment, the Equipment Alliance aligns proven, effective distributors with companies entering a new geography. The company achieves market expertise and contacts, and the distributor broadens its portfolio of offerings. "We are working with a fast-growing German electronics company that plans to enter the U.S. market," explained Cook. "While it sometimes takes 3 to 5 years to find, establish and implement an effective distribution network, we have been able to supply an existing distribution network with an instant sales force of professionals familiar with their equipment, technology and local market opportunities. This reduced implementation time to reach full productivity to 12 to 18 months and reduced distribution costs by half." The distributor also benefited by receiving a distinctive product with unique capabilities for the U.S. market. In addition to the solution, Dow Corning provides the materials used in the company's equipment and contributes macro-electronics expertise based on its acquisition of Raychem Power Materials. Offering Global Expertise and Expansion Support Expansion solutions can be narrow or broad-based. When a small, innovative electronics company decided to expand into North America but was unable to secure financing for the move, it needed to consider other options. Investment banks would not provide funding because of the company's size and relatively short time in business. "Our solution involved Dow Corning partnering with the company, which provided the immediate credibility, global expertise, and resources the financial institutions needed to agree to fund the enterprise," Cook continued. "We also helped them by arranging a distribution network, providing repackaging services, and giving the company entree to our own North American customers. This has become a model for the entry of other European companies into American markets." Partnering with a major global company gives small and medium-sized companies large-company advantages. "Small companies indicate what they need most is expertise, resources and connections of established players in a new geography," explained Cook. "We have been able to fill in any gaps, expand their reach and capabilities, and accelerate speed to market which is extremely important in a competitive marketplace." Innovation Can Be Affordable Some companies require innovation services but haven't the time or financial resources for research and development. For them, there is a new opportunity to contract R&D services from an established, innovation-focused company like Dow Corning. R&D solutions reduce the company's time and minimize risk. As an option to paying for R&D outright, Dow Corning often works within a revenue-sharing arrangement by which it is paid a percentage of the revenue generated from the innovation. For many companies, this increases opportunities and allows them to create new markets by partnering with Dow Corning, a leader in silicon science. A Different Way of Supporting Customers These solutions reflect a new way of doing business. Where previously, Dow Corning focused on developing and marketing silicon-based materials, the company now supports customers in multiple ways, offering expertise and technology leadership and to help companies achieve their business goals. "Where we once had limited points of contact with customers, typically between our sales person and the company's procurement department, we now interface with companies on multiple levels," said Cook. "Our engineers work with customers' engineers to troubleshoot process problems on their manufacturing lines, our scientists support customers' scientists in creating new formulations, R&D teams help customers' brand managers create new markets and our business development leaders work with our customers' business owners to outline and develop proposals to meet their significant business challenges. "We have transformed Dow Corning from a materials supplier into a solutions provider that helps electronics customers increase their profitability, boost productivity, solve problems, and achieve their business goals." Dow Corning (http://www.dowcorning.com/ ) provides performance-enhancing solutions to serve the diverse needs of more than 25,000 customers worldwide. A global leader in silicon-based technology and innovation, offering more than 7,000 products and services. Dow Corning is equally owned by The Dow Chemical Company (NYSE:DOW) and Corning, Incorporated (NYSE:GLW). More than half of Dow Corning's annual sales are outside the United States. DATASOURCE: Dow Corning Corporation CONTACT: Amy Rosborough (U.S.), +1-989-496-8288, Karen Heenan-Davies (Europe), + 44-1446-723-498, or Liliana Ng (Asia), + 852-2835-0387, all of Dow Corning Corporation Web site: http://www.dowcorning.com/

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