Glass and ceramics maker Corning Incorporated has started construction of a facility in Shanghai as part of an investment package of more than USD 900 million in China.
The move, which was announced …
Glass and ceramics maker Corning Incorporated has started construction of a facility in Shanghai as part of an investment package of more than USD 900 million in China. The move, which was announced by its board of directors in July, and aims at increasing the manufacturing capacity in its environmental technology and life sciences segments in China, includes three projects: the facility in Shanghai, a manufacturing and distribution facility costing about USD 40 million in Wujiang, Jiangsu province, and a new liquid crystal display glass substrate facility in the Beijing Digital TV Industry Park. The latest move marks the second expansion of Corning“s automotive substrate facility in China and it is another milestone in our commitment to China, said Eric Musser, chief executive officer of Corning China. China“s emerging economy and the strength of the Asian market are critical to Corning“s long-term growth strategy. More than half of our overall revenues are now generated in Asia and China has become the largest market for all our products, he added. Corning“s expansion of its existing light-duty (automotive) substrate manufacturing facility in Shanghai is expected to be operational in the second half of 2012. The company began shipping emissions-control products from the Shanghai facility in 2001 and completed its first plant expansion in 2007. The automotive market in China is expected to grow steadily over the next few years, said Thomas Lynch, general manager of Corning Shanghai Co. Ltd. Tighter regulations, including the Euro 4 regulations that were recently adopted by Beijing and Shanghai, are driving the demand for Corning“s innovative emissions control products. A majority of the products from the facility will be sold locally with a small part sent overseas, Lynch said. Thomas Hinman, senior vice-president and general manager for Corning“s environmental technologies department, said global sales of automobiles will grow steadily over the next few years, outpacing industry expectations. This production expansion will allow Corning“s US and European production facilities to better meet the increased demand for clean-air products as both the North American and European auto markets recover from the recent recession, Hinman said. Corning has invested USD 3 billion in the Chinese market, building on its almost 30-year history. The move reinforces the company“s strategy to locate facilities in growth regions, Musser said. We remain committed to supporting China“s development of key industries through a combination of strategic investments, innovative technologies and values-based market leadership, he said.