Company will also invest in Life Sciences
CORNING, N.Y. — (BUSINESS WIRE) — July 21, 2010 — 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.”
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 (
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.