Corning to Invest in Gen 10.5 LCD Glass Substrate Facility in Hefei
December 01 2015 - 6:50AM
Company signs agreement to supply Gen 10.5 substrates to
BOE;
extends supply agreement with BOE
on Gen 8.5 and smaller gen sizes
CORNING, N.Y.,
December 1, 2015 - Corning Incorporated (NYSE:GLW) announced today
that with the support of the Hefei government, Corning will locate
a Gen 10.5 glass manufacturing facility adjacent to the BOE
Technology Group Co. Ltd. (BOE) plant in the Hefei XinZhan General
Pilot Zone in Anhui Province, China. Glass substrate production
from the new facility is expected to support BOE's plan to begin
mass production of LCD panels for large-size televisions by the
third quarter of 2018.
The total investment for the facility is
approximately $1.3 billion. Corning's investment will be composed
primarily of equipment and precious metals. Corning's net outlay of
$460 million, which is net of government and commercial incentives,
is expected to be approximately $290 million in cash and $170
million of currently owned precious metals.
As part of this investment, Corning and BOE have
entered into a long-term supply agreement that commits BOE to the
purchase of Gen 10.5 glass substrates from the Corning
manufacturing facility in Hefei. BOE also has extended its
long-term supply agreement with Corning to purchase glass
substrates for Gen 8.5 sizes and below.
The market for large-size TVs is projected to grow
at a compound annual growth rate of more than 20%. This investment
will enable Corning to become the first manufacturer of TFT-grade
Gen 10.5 substrates. At 2,940 mm x 3,370 mm, Gen 10.5 will be the
largest LCD glass substrate available, providing the most
economical cuts for 65-inch and 75-inch TVs. The Gen 10.5
substrates manufactured at the Hefei facility will use Corning®
EAGLE XG® slim glass.
"Corning is pleased to extend its close
relationship with BOE and to demonstrate our continued commitment
to China -- the world's largest TV market," said James P. Clappin,
president, Corning Glass Technologies. "As demand for
large-size LCD TVs accelerates, we are supporting this trend by
utilizing our superior fusion technology to deliver the industry's
largest glass substrates to a key customer."
"Corning is confident that we can pace the
investment with BOE's expansion, keeping our supply balanced with
our demand when this facility begins producing glass approximately
three years from now," said John Zhang, general manager of Corning
Display Technologies.
Corning and BOE have worked together since 2004
when BOE established its first Gen 5 panel fab in Beijing. This
relationship extended to Corning's introduction of Gen 8.5 melting
and finishing capacity in Beijing in 2013, alongside BOE's Gen 8.5
panel fab in Beijing Economical and Technological Development
Zone.
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.
Digital Media
Disclosure
In accordance with guidance provided by the SEC regarding the use
of company websites and social media channels to disclose material
information, Corning Incorporated ("Corning") wishes to notify
investors, media, and other interested parties that it intends to
use its website
(http://www.corning.com/worldwide/en/about-us/news-events.html) to
publish important information about the company, including
information that may be deemed material to investors. The list of
websites and social media channels that the company uses may be
updated on Corning's media and website from time to time. Corning
encourages investors, media, and other interested parties to review
the information Corning may publish through its website and social
media channels as described above, in addition to the company's SEC
filings, press releases, conference calls, and webcasts.
About Corning
Incorporated
Corning (www.corning.com) is one of the world's leading innovators
in materials science. For more than 160 years, Corning has applied
its unparalleled expertise in specialty glass, ceramics, and
optical physics to develop products that have created new
industries and transformed people's lives. Corning succeeds through
sustained investment in R&D, a unique combination of material
and process innovation, and close collaboration with customers to
solve tough technology challenges. Corning's businesses and markets
are constantly evolving. Today, Corning's products enable diverse
industries such as consumer electronics, telecommunications,
transportation, and life sciences. They include damage-resistant
cover glass for smartphones and tablets; precision glass for
advanced displays; optical fiber, wireless technologies, and
connectivity solutions for high-speed communications networks;
trusted products that accelerate drug discovery and manufacturing;
and emissions-control products for cars, trucks, and off-road
vehicles.
Media Relations Contacts -
Corning:
John O'Hare
(607)
974-7488
ohareja@corning.com
Daniel F.
Collins
(607)
974-4197
collinsdf@corning.com
Media Relations Contact -
China:
Mindy Qu
86-21-2215-2888
x1900
qum@corning.com
Investor Relations
Contact:
Ann H.S. Nicholson
(607) 974-6716
nicholsoas@corning.com
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responsible for the content, accuracy and originality of the
information contained therein.
Source: Corning Incorporated via Globenewswire
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