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Corning to Expand Clean-Air Auto Product Manufacturing in China

^{Published on 2010-07-21 13:10:53 - Market Wire}
 

CORNING, N.Y.--([ BUSINESS WIRE ])--Corning Incorporated (NYSE:GLW) announced today that its [ board of directors ] has approved a capital expenditure plan to increase manufacturing capacity in the companya™s [ Environmental Technologies ] and [ Life Sciences ] segments in the Peoplea™s Republic of China.

"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 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 Corninga™s 2011 capital expenditures.

aChinaa™s emerging economy and the strength of the Asian market are critical to Corninga™s long-term growth strategy,a said [ Peter F. Volanakis ], president and chief operating officer. aMore than half of our overall revenues are now generated in Asia, and China has become the largest market for all our core products.a

Environmental Technologies

Corninga™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 Corninga™s Environmental Technologies segment, said, aWe 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 governmenta™s commitment to tighten auto emissions regulations, should lead to a very robust business environment for the foreseeable future.a Hinman noted that this production expansion will also allow the companya™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, Chinaa™s national healthcare spending is expected to approach $250 billion annually this year.

aThe opportunity to establish a local presence in this growing market is driving our investment decision,a 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. aWe believe this new facility will provide us with a distinct advantage for improved market access and local distribution.a

[ Eric S. Musser ], chief executive officer of Corning Greater China, underscored the importance of China to Corninga™s growth strategy. aThese investments build upon Corninga™s nearly 30-year history in China, and reinforce our strategy to locate facilities in growth regions,a he said. aWe remain committed to supporting Chinaa™s development of key industries through a combination of strategic investments, innovative technologies, and values-based market leadership.a

Forward-Looking and Cautionary Statements

This press release contains aforward-looking statementsa (within the meaning of the Private Securities Litigation Reform Act of 1995), which are based on current expectations and assumptions about Corninga™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 thefinancial 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 fluctuationsandchanges in the mix of sales between premium and non-premium products; new plant start-upor restructuringcosts; 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 otherrisk factors aredetailedin Corninga™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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