Corning Announces Transfer of Corning® Gorilla® Glass Production
06 Marzo 2014 - 10:00PM
CORNING, N.Y., March 6,
2014 - Corning Incorporated (NYSE: GLW) today
announced that it will transfer the production of Corning® Gorilla®
Glass from its manufacturing facility in Shizuoka, Japan to its
facility in Asan, Korea. Corning expects to complete this transfer
and to close the east side of its Shizuoka facility by June of
2015.
When Corning announced its strategic agreements
with Samsung Display Co., Ltd. last October, resulting in the
acquisition of Samsung Corning Precision Materials Co., Ltd. - now
Corning Precision Materials Co., Ltd. (CPM) - Corning explained
that this transaction would deliver strategic and financial
benefits to the company. These benefits include the ability to
leverage underutilized, low-cost, CPM capacity in Asan, Korea, to
produce both LCD display glass and protective cover glass for
Corning's customers worldwide. Corning is now pursuing this
particular benefit through its plan to transfer Gorilla Glass
production from Shizuoka to CPM.
"This transfer of production reinforces Corning's
belief, which we previously communicated, that the annual synergies
anticipated with the acquisition of CPM can reach approximately
$100 million in 2015 and potentially increase in the future. A
significant portion of these synergies is expected to come from the
optimization of Corning's global manufacturing footprint, as in
this transfer of Gorilla Glass production to CPM announced today,"
James P. Clappin, president, Corning Glass Technologies, said.
"In order to accomplish this transfer to CPM and
achieve these synergies, we needed a predictable demand outlook in
Korea and, now that CPM has concluded agreements through 2014 with
all of its major LCD customers, we believe that we have achieved
this. We had previously announced in the fourth quarter of 2013
that our wholly owned business, which did not include CPM at that
time, had renewed its customer agreements which also would continue
through at least 2014," Clappin remarked. "We expect that these
customer agreements will help keep our total display share in 2014
consistent with our share in 2013, which will make demand for our
display glass more predictable and allow us to deliver the
anticipated synergies associated with optimizing our global
manufacturing footprint while meeting our supply commitments for
both display and cover glass.
"Restructuring actions are the most painful
actions we take," Clappin said, adding, "We will put voluntary
workforce reduction measures into place and provide contractor
replacement and transfer options in Japan. Corning will treat its
Japan-based employees with dignity and respect, consistent with our
values, throughout this difficult time."
Senior leaders from Corning met with all of the
company's Japan-based employees on March 6 to explain this
decision and answer questions. Company representatives are in the
process of reviewing the options available to employees in the
company's Shizuoka facility and will work closely with them to
address their concerns.
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.
About Corning
Incorporated
Corning Incorporated (www.corning.com) is the world leader in
specialty glass and ceramics. Drawing on more than 160 years of
materials science and process engineering knowledge, Corning
creates and makes keystone components that enable high-technology
systems for consumer electronics, mobile emissions control,
telecommunications and life sciences. Our products include glass
substrates for LCD televisions, computer monitors and laptops;
ceramic substrates and filters for mobile emission control systems;
optical fiber, cable, hardware & equipment for
telecommunications networks; optical biosensors for drug discovery;
and other advanced optics and specialty glass solutions for a
number of industries including semiconductor, aerospace, defense,
astronomy, and metrology.
Media Relations
Contact:
John A. O'Hare
(607) 974-7488
ohareja@corning.com
Investor Relations
Contact:
Ann H.S. Nicholson
(607) 974-6716
nicholsoas@corning.com
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announcement is distributed by NASDAQ OMX Corporate Solutions on
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The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: Corning Incorporated via Globenewswire
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