This incremental investment in Corning's diesel manufacturing facility will provide more firing and finishing capability to meet anticipated market demand for its recently introduced Corning DuraTrap(R) AT filter, for diesel passenger car use, as well as demand for Corning substrates and filters for medium and heavy-duty diesel engine applications. These manufacturing enhancements are expected to be fully operational in late 2006.
"Strong market interest in our new Corning DuraTrap(R) AT filter - along with broader application of our diesel substrates and filters for model-year 2007 and beyond medium and heavy-duty diesel engines -- has prompted this newest investment," said Thomas R. Hinman, vice president and general manager, Corning Diesel Technologies. "Today's announcement is consistent with our often-stated goal of meeting growing customer demand for Corning diesel products with incremental additions to manufacturing capability."
The earlier expansion, announced in February 2005, is currently underway and focuses on cutting, firing and finishing capability for the production of Corning substrates and filters for medium and heavy-duty clean diesel applications. These manufacturing enhancements are also expected to be fully operational in late 2006.
New U.S. clean-air standards for on-road heavy-duty diesel vehicles are set to take effect in 2007. Corning is working closely with major diesel engine and vehicle manufacturers to incorporate the company's diesel filters and substrates into emissions aftertreatment systems to be used on medium and heavy-duty vehicles that meet these low-emissions standards.
In Europe, demand for cleaner diesel passenger cars is being driven by both consumer demand and various government tax incentives. This year, approximately half of all new cars sold in Europe are expected to be powered by diesel engines. Corning expects that the Corning DuraTrap(R) AT filter will be used on selected diesel cars sold in Europe beginning later this year.
Hinman noted that the global diesel products market is expected to be approximately $250 million in 2005 and it could grow into a $1 billion market opportunity by 2008 as new U.S. and European clean-air standards take effect.
Original plans for the Corning Diesel Manufacturing Facility were announced in October 2001 and the facility began production in 2004. It manufactures cellular ceramic substrates and particulate filters used in diesel engine exhaust treatment systems. Used either individually or in combination - and oftentimes catalyzed - these products help reduce particulate matter (soot) and nitrogen oxide emissions.
Corning is a leading supplier of advanced catalytic converter substrates and particulate filters to all of the world's major manufacturers of gasoline and diesel engines and vehicles. The company invented an economical, high-performance cellular ceramic substrate in the early 1970s that is now the standard for catalytic converters worldwide. In 1978, Corning developed the cellular ceramic particulate filter to remove soot from diesel emissions.
About Corning Incorporated
Corning Incorporated ( www.corning.com) is a diversified technology company that concentrates its efforts on high-impact growth opportunities. Corning combines its expertise in specialty glass, ceramic materials, polymers and the manipulation of the properties of light, with strong process and manufacturing capabilities to develop, engineer and commercialize significant innovative products for the telecommunications, flat panel display, environmental, semiconductor, and life sciences industries.
Forward-Looking and Cautionary Statements
This press release contains forward-looking statements that involve a variety of business risks and other uncertainties that could cause actual results to differ materially. These risks and uncertainties include the possibility of changes or fluctuations in global economic and political conditions; tariffs, import duties and currency fluctuations; product demand and industry capacity; competitive products and pricing; manufacturing efficiencies; cost reductions; availability and costs of critical components and materials; new product development and commercialization; order activity and demand from major customers; capital spending by larger customers in the liquid crystal display industry and other businesses; changes in the mix of sales between premium and non-premium products; facility expansions and new plant start-up costs; possible disruption in commercial activities due to terrorist activity, armed conflict, political instability or major health concerns; ability to obtain financing and capital on commercially reasonable terms; adequacy and availability of insurance; capital resource and cash flow activities; capital spending; equity company activities; interest costs; 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; changes in key personnel; stock price fluctuations; and adverse litigation or regulatory developments. These and other risk factors are identified 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.
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