Oct 6 2005
Corning Incorporated has announced that its board of directors has approved an additional capital expenditure plan of $425 million for expansion of the new liquid crystal display (LCD) glass substrate manufacturing facility in Taichung, Taiwan. This investment will be used to fund the third phase of the Taichung facility, with the majority of the expenditure to be incurred during 2006 to 2007.
The construction of the third phase of the new Taichung facility will occur in stages over the next two years, following a modular construction plan that will be paced to market demand. Initial manufacturing from this third phase is projected to begin in late 2006, with production continuing to come online through 2007.
The Taichung facility will ultimately manufacture Generation 5.5, Generation 6, Generation 7.5 and larger glass substrates, suited to meet the continued strong demand for desktop monitors and the emerging market for LCD televisions.
“This new investment will add significantly to Corning’s large-size glass substrate melting and finishing capacity and it will continue to strengthen our position as a leading supplier of glass substrates to the growing LCD industry,” said James P. Clappin, president, Display Technologies. “Our goal is to keep pace with projected LCD industry demand. However, we will phase the timing of production lines within the Taichung facility to meet the pending supply agreements with customers in Japan and Taiwan.”
James B. Flaws, vice chairman and chief financial officer, added, “Previously announced expectations for the company’s 2005 financial performance, including our $1.5 billion capital expenditure plan, are not affected by this announcement. We continue to be on track to achieve positive free cash flow this year. This third phase of the Taichung plant has been in our 2006 capital spending plan and our goal is to be free cash flow positive in 2006 also.”
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