Corning Incorporated will invest $800 million to build a new LCD glass substrate facility in China, it was confirmed yesterday (21st July).

The company has received government backing to construct the plant in the Beijing Digital TV Industry Park, with first production expected in the first half of 2012.

In addition, an expansion project has been pencilled in for its Taichung site in the country, with idled capacity also being ramped up at its facility in Shizuoka, Japan.

Corning agreed the capital expenditure plan in order to make the most of strong demand for its two flagship products, EAGLE XG LCD substrates and Gorilla glass.

"These investments will position Corning to capture significant new sales opportunities from rapidly increasing demand for our Gorilla glass, while continuing to meet the demand for our EAGLE XG products," said Chairman and Chief Executive Wendell Weeks.

"Gorilla glass has already been embraced by information technology and handheld device makers, and the addition of the TV cover glass application creates a tremendous opportunity for further growth."

The company believes sales of Gorilla glass could exceed $200 million this year in its specialty materials segment, before reaching about $1 billion per year by 2011.

James Clappin, President of Corning Display Technologies, expressed his excitement at the expansion plans for China, which he described as an "emerging market" for LCD glass.

"China is not only one of the world's leading consumers of LCD televisions; it is also poised to become a major producer of LCD panels for TV applications within the next several years," he said.

Corning also suggested that annual LCD glass demand could reach the higher end of its forecasted range of 2.9 billion sq ft to 3.1 billion sq ft this year.

Source:

Corning Announces New Capacity Investments (21/07/10)

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