Corning Inc., the world“s biggest supplier of glass used in flat-screen televisions, is said to be investigating the possibility of setting up an advanced glass manufacturing facility in China, and h…
Corning Inc., the world“s biggest supplier of glass used in flat-screen televisions, is said to be investigating the possibility of setting up an advanced glass manufacturing facility in China, and has already held preliminary talks with government officials and clients. “We“ve communicated we“re interested in potentially exploring expansion in China,” said James Clappin, president of Corning Display Technologies, in a recent interview. “At this point, it“s too early to make an announcement and too early to say where this will all go.” In September 2009, two of Corning“s major customers, LG Display and Sharp, announced that they will set up eighth generation LCD manufacturing plants in China to make large-size panels used in televisions. Corning has typically opened glass facilities near its major customers“ plants to make it easier for bigger panels to be transported, which becomes even more necessary as glass sizes increase. Corning also opened a plant in Sakai, western Japan, earlier in October, timing its opening with Sharp“s opening of its tenth generation facility, which uses glass sheets that can cut 70-inch panels for televisions. Clappin said the company had not decided on a location for the facility, but that the region would depend on available infrastructure to support glass making. “Projections for China are very, very strong, partly because (cathode ray tube) is disappearing and partly because of the economic growth in China,” said Clappin, noting that panel makers are building facilities in China because that“s where their assembly operations are and it shortens the supply chain. Sales of LCD TVs in China rose 86% during the first six months of 2009, to 9.5 million units from 5.1 million units during the same period of 2008. According to analysts, the better-than-expected first-half sales were partially caused by an economic stimulus plan giving rural Chinese residents subsidies when purchasing electronic goods. In comparison, North America, the world“s largest LCD TV market, will likely see unit growth of 4.7% this year, while China will see 76%. The company expects its plant in Shizuoka to boost capacity to the previous level by mid to late fourth quarter. Clappin added that he expects market conditions in the first quarter to be much better than a year earlier when demand was weak and the market was oversupplied. “There“s guarded optimism for the fourth quarter. First quarter will be seasonally slower but nothing like the first quarter of last year,” said the executive. “The industry will continue to grow.”