Corning, New York, United States
Corning Incorporated (NYSE:GLW) announced today that its board of directors has approved a capital expenditure plan of $160 million to further expand its capacity to manufacture large size glass substrates for active matrix liquid crystal displays (LCD) at its facility in Shizuoka, Japan.
The expenditure will be incurred over the next year and a half, with glass substrate production expected to begin by mid-2008. Capacity figures were undisclosed.
"We have built our leadership position by combining our technology expertise with a dedication to providing a reliable source of superior products," said James P. Clappin, president of Corning Display Technologies. "The increased capacity will create additional support for our customers in Japan and Taiwan, who are experiencing growing demand as LCD TV strengthens its hold on the 40-inch and larger market."
In 2006, Corning signed a long-term supply agreement with Sharp Corporation making Corning the majority glass substrate supplier for Sharp's Generation (Gen) 8 fab in Mie Prefecture, which focuses on LCD TVs that are 40 inches and larger.
At 2160 x 2460 mm, Gen 8 is currently the largest glass substrate available, but next-generation substrates are already on the horizon. "As we expand our Gen 8 capacity, Corning is beginning its development of Gen 9 and larger in order to prepare for customer demand of larger-size substrates," said Clappin.
The Gen 8 substrates manufactured at the Shizuoka facility are Corning's EAGLE XG(TM) glass. EAGLE XG is the first LCD substrate to contain no added heavy metals. It is also free of halides, making it the most environmentally friendly LCD glass on the market.
Corning previously said that it expects the overall LCD glass substrate market to grow in the mid-30 percent range in 2007. The company also said that LCD TV penetration is expected to reach 33 percent of the global television market this year, up from 22 percent last year. The company has also said that it expects worldwide glass demand to grow by at least 400 million square feet in 2007. The industry's total demand for glass reached 1.2 billion square feet in 2006.
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.
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 in global economic and political conditions; currency fluctuations; product demand and industry capacity; competition; manufacturing efficiencies; cost reductions; availability of critical components and materials; new product commercialization; changes in the mix of sales between premium and non-premium products; new plant start-up costs; possible disruption in commercial activities due to terrorist activity, armed conflict, political instability 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; stock price fluctuations; and adverse litigation or regulatory developments. Additional 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.
CONTACT: Corning Incorporated Media Relations: James E. Terry 607-974-7343 terryje@corning.com or Daniel F. Collins 607-974-4197 collinsdf@corning.com or Investor Relations: Kenneth C. Sofio 607-974-7705 sofiokc@corning.com
Source: Business Wire (Business Wire India)