GLW Corning Inc

Dow Corning Responds to Soaring Market Demand for Silicon-Based Materials MIDLAND, Mich., Aug. 23 /PRNewswire-FirstCall/ -- In response to a surge in global demand for its silicon-based products, Dow Corning Corporation has increased its overall volume more than 15 percent at the end of the first half of 2004 when compared to the same time period last year. Demand is particularly strong for basic silicone products, according to Courtney Rowe, Dow Corning global product line manager. "Innovation in a wide range of industries, coupled with major building initiatives and infrastructure requirements in emerging markets are really driving demand for siloxanes and other core silicones," Rowe says. "We're working hard to respond to this significant increase in demand by optimizing production wherever we can." Demand for silicon-based materials is growing in virtually every geographic market. In addition to China and India, demand for silicon- based materials has dramatically increased in Russia and Korea. With an ongoing commitment to investment in the industry, Dow Corning will undertake a manufacturing "stretch" project at its facility in Barry, UK where it expects to increase production of polydimethyl siloxanes by nearly 15 percent. "This increase at the largest and most technologically advanced facility for the manufacture of silicon-based materials in the world represents a significant increase in available product in the market," said Rowe. The stretch effort involves installation of new equipment in critical process phases as well as reliability improvements identified through the application of Six Sigma principles. The "stretch" project at the Barry site, scheduled for completion in early October, represents one of a series of ongoing investments by the company to significantly increase the supply of silicone materials. Another major expansion at the site is slated for 2006. Longer-term, Dow Corning is planning significant expansion in the manufacture of silicones for Asian markets with the construction of a world class manufacturing facility in China by the end of the decade. According to Rowe, the company is also exploring supply options in India, and recently concluded a land purchase agreement. Rowe noted that Dow Corning is working closely with customers to address their needs. The company is consulting with some customers to help them optimize their production capability to deliver greater value from product supply. "It's an exciting time to work in our industry," says Rowe. "The global marketplace has recognized the benefit and versatility of silicon technology as companies seek to innovate and grow." Other Dow Corning Global Supply Chain Improvements Committed to ongoing innovation throughout the supply chain, Dow Corning has implemented the following improvements: * In May 2003, Dow Corning strengthened its Asian supply chain with the addition of new siloxane storage and distribution facilities in Ulsan, South Korea and Shanghai, China, in order to provide customers in the region with faster and more flexible delivery of high volume materials. * To address customer demand and market growth in Korea, Dow Corning announced a 40 percent capacity increase for sealants and polymers in December 2003. * Dow Corning announced a 40 percent increase in the global production of silane coupling agents in December 2003. * To address customer demand for silicone rubber, Dow Corning has increased production of intermediates for silicone rubber by 20%. About Dow Corning Dow Corning (http://www.dowcorning.com/ ) provides performance-enhancing solutions to serve the diverse needs of more than 25,000 customers worldwide. A global leader in silicon-based technology and innovation, offering more than 7,000 products and services. Dow Corning is equally owned by The Dow Chemical Company (NYSE:DOW) and Corning, Incorporated (NYSE:GLW). More than half of Dow Corning's annual sales are outside the United States. Europe, +44 1446 723 498, or Liliana Ng / Asia, +852 2835 0387, all of Dow Corning DATASOURCE: Dow Corning Corporation CONTACT: Mary Lou Benecke (U.S.), +1-989-496-8689, Karen Heenan-Davies Web site: http://www.dowcorning.com/

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