Corning Inc. (GLW) disclosed a plan to shutter part of a
manufacturing facility in Japan and transfer that production to a
site in South Korea, as the glass maker looks to move some work to
a lower cost region.
The portion of the facility that will be affected at the
Shizuoka, Japan, site is production of so-called Gorilla glass,
which is strengthened cover glass that is used for mobile
phones.
The move is tied to Corning's move last year to take control of
a joint venture with Samsung Electronics Co.'s (SSNHZ, 005930.SE)
business that makes LCD glass in South Korea. Corning already takes
advantage of low-cost production in Asan, Korea, to produce LCD
display glass and protective cover glass and is now intending to
expand for production of Gorilla glass.
John O'Hare, worldwide communications manager at Corning, said
the action would eliminate 189 permanent positions in Japan and
another 15 non-sales staff and shared service jobs, as well as 138
contractor positions. In total, Corning employees about 30,000
full-time employees worldwide.
However, Corning intends to offer those employees a mix of
contract replacement, transfer options and voluntary separation
packages, Mr. O'Hare said.
Mr. O'Hare said the plan to shift production doesn't change
Corning's total worldwide capacity. And Corning has no plans to
close the remaining production at the Japan facility, which will
still employee about 350 people after Corning closes a portion of
the site by June 2015.
Corning late in January reported its fourth-quarter profit
jumped as the company posted lower production and restructuring
costs, though sales slipped.
Shares were unchanged after hours on Thursday, after closing the
regular session down 0.6% to $19.54.
Write to John Kell at john.kell@wsj.com
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