Corning to Expand Glass Plant
CORNING, N.Y., Feb. 7, 2007 -- Corning Inc. announced that its board of directors has approved a capital expenditure plan of $453 million to further expand its liquid crystal display (LCD) glass substrate manufacturing facility in Taichung, Taiwan. This will be the fourth phase of expansion for the Taichung facility, which opened in 2006.
The additional capacity enables greater manufacturing capabilities for a variety of large-size substrates, including Generation (Gen) 8, Corning said in a statement. The expenditure will be incurred over the next two years, with mass production scheduled to begin by the first quarter of 2009. Production will continue to come online through the end of 2009. The company said the expenditures are included in its previously announced 2008 capital spending estimates.
The Taichung facility manufactures Gen 5 and larger glass substrates, suited to meet the demand of the LCD TV market. The glass manufactured at the facility is Corning's Eagle XG glass composition, the first glass substrate to contain no added heavy metals or halides, the company said.
"As consumers express their clear preference for LCD televisions, the industry is growing at a rapid rate, and we are continuing to develop the Taichung facility in order to keep pace with projected demand," said James P. Clappin, president, Corning Display Technologies.
"The high demand for LCD TV panels has translated to accelerated growth for our customers in Taiwan," said Alan T. Eusden, president, Corning Display Technologies Taiwan. "Corning is focused on meeting customer supply agreements to support panel manufacturers' ongoing advancement."
Over the past two years, the 40-inch-and-above LCD TV market has been a primary driver of growth for LCD glass demand. This growth in glass demand is expected to continue, partly driven by the emergence of 50-inch-and-larger LCD TVs, Corning said.
The company will provide more details on the growth of the overall LCD glass substrate market at its annual investor relations meeting, being held Feb. 8 in New York.
For more information, visit: corning.com
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