Company announces production expansions in Germany and
China to supply continued auto manufacturer platform
wins
CORNING, N.Y., DECEMBER 5, 2016 - Corning
Incorporated (NYSE: GLW) announced that it is expanding its
Environmental Technologies manufacturing facilities in
Kaiserslautern, Germany, and Shanghai, China, to increase
production capacity of its DuraTrap® GC gasoline-particulate filter
(GPF) product line. The $100 million investment in these two
facilities enables Corning to address growing demand from
automakers for filters that help them comply with new Euro 6c and
China 6 emissions standards, which are slated to go into effect in
2017 and 2020, respectively.
Several global automakers have already announced
plans to equip vehicles with gasoline-particulate filters to meet
the Euro 6c regulations. Based on its filter design, range of
system configurations, and strong technical support, Corning has
won a major share of gasoline-particulate filter platforms to date.
Sales are expected to begin ramping in 2017, as the company seeks
to build another significant business within its automotive
market-access platform.
Demand for gasoline particulate filters is being
driven by new regulations in Europe and China, which establish more
stringent emissions limits and address particulates released by
gasoline direct-injection (GDI) engine vehicles. GDI engine
vehicles are increasingly popular as consumers demand better fuel
economy without sacrificing engine performance.
As a result, the market for vehicles with GDI
engines has grown rapidly, to about a quarter of worldwide
passenger vehicle sales, with the rate of sales growth in the high
teens percentage annually. However, these engines produce a high
number of fine particulates that impact air quality and have been
linked to negative health effects. DuraTrap® GC filters feature a
new, patented cordierite-based material composition with an
innovative engineered ceramic microstructure designed to trap fine
particulates, while maintaining engine performance with low engine
back pressure.
"We see the development of this significant new
gasoline-particulate filter market opportunity as an exciting new
chapter in Corning's 40-plus year history of serving the auto
industry and global clean-air initiatives," said Hal Nelson, vice
president and general manager of Corning Environmental
Technologies. "Investing in our Kaiserslautern and Shanghai
facilities demonstrates our commitment to helping our customers
meet evolving emissions regulations with innovative
emissions-control products and reliable supply."
Corning's Kaiserslautern facility, which has been
producing diesel particulate filters since 2011, will expand its
footprint with new production lines and state-of-the-art equipment
dedicated to DuraTrap® GC filters. New assets will begin running
early next year with completion of the entire expansion project by
early 2018, quadrupling the facility's filter manufacturing
capacity. These investments are supplemental to facility upgrades
currently underway that will be on line in early 2017, and are part
of the capital expenditure plan under Corning's Strategy and
Capital Allocation Framework, announced in October 2015.
"At Kaiserslautern, we are proud to be leading
European production of Corning's DuraTrap® GC gasoline particulate
filter product line," said Klaus Wellstein, general manager,
Germany and South Africa, Corning Environmental Technologies. "Our
facility will soon be well-equipped to supply a range of solutions
that advance clean-gasoline design with proven solutions for the
next round of emissions regulations."
The Shanghai facility expansion is also on track
for completion in early 2018. This is the first step of a phased
investment approach for DuraTrap® GC filter production in China.
The Shanghai facility has been at the forefront of meeting the
Chinese market's demand for light-duty substrates and filters since
2001.
"In Shanghai, we are adding capacity to lead
production of gasoline particulate filters for local Chinese and
global automakers," said Wu Dan, general manager, China, Corning
Environmental Technologies. "This is the first step in our plans
for production of DuraTrap® GC filters in China and we look forward
to continuing our commitment to customers with this
investment."
Corning is a leading supplier of advanced
cellular ceramic substrates and particulate filters for
the world's major manufacturers of gasoline and diesel engines. The
company invented an economical, high-performance, cellular ceramic
substrate in the early 1970s that is now the standard for catalytic
converters worldwide. In 1978, Corning developed the cellular
ceramic particulate filter to remove soot from diesel emissions.
Corning continues to leverage its expertise in material science and
manufacturing to develop market-leading emissions control solutions
that help our customers meet new emissions standards and enable
cleaner air worldwide.
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:
M. Elizabeth Dann
(607) 974-4989
dannme@corning.com
Agatha
Lutoborski
(607)
248-4320
lutoborsak@corning.com
Media Relations Contact - Germany:
Andrea Bienko-Osann
49-611-7366-142
bienkoa@corning.com
Investor Relations
Contact:
Ann H.S. Nicholson
(607) 974-6716
nicholsoas@corning.com
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DuraTrap® GC Filters
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information contained therein.
Source: Corning Incorporated via Globenewswire
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