Corning says its board of directors has approved a capital expenditure plan of around US$250m to increase manufacturing capacity of the company’s diesel emissions control products.
The majority of the investment will increase capacity at the Erwin diesel facility near Corning, which manufactures large ceramic substrates and filters for heavy-duty diesel engine, truck, construction, and agricultural equipment manufacturers worldwide.
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“Important heavy-duty regulations in China and Europe, as well as for non-road vehicles, take effect over the next two years which could double demand for our products by 2017,” said Corning Environmental Technologies & Life Sciences Business Group EVP, Mark Beck.
“These investments in our manufacturing capabilities demonstrate our commitment to ensuring a reliable supply of next-generation diesel products to our global customers for years to come.”
Corning’s diesel plant in Erwin began manufacturing large substrates in 2004 and now also produces particulate filters for heavy-duty applications.
The company has already completed two facility expansions to accommodate global market growth.
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By GlobalDataCorning said spending on the US$250m project will take place during a three-year period and will not change the company’s previous capital spending forecasts for 2013 and 2014.
The latest project is expected to be operational in 2015 and to create an additional 250 new full-time positions.
“The expansion of this facility is great news for New York – a testament to our workforce and further proof of our ability to compete for global jobs and business,” said New York Governor, Andrew Cuomo.
“We are extremely pleased Corning has decided to make a major investment to expand their capacity here in Erwin, and look forward to them growing and thriving in the region.”
Corning’s expansion plan also includes an investment in new heavy-duty finishing operations at Corning (Shanghai) Co, Corning’s wholly-owned substrate facility in Shanghai.
Adding these capabilities marks Corning’s first heavy-duty diesel capacity investment in Asia.
The company has secured land in Shanghai for future expansion in China as the global heavy-duty diesel market grows.
Environmental regulations in emerging markets such as India and China are expected to drive additional capacity needs that would require constructing a new facility in this location to meet future demand.
“Corning has been investing in Greater China for more than 30 years and was the first substrate manufacturer in China,” said Corning Greater China president and general manager, Li Fang.
“As China enforces tighter emissions standards, it will become a significant market for clean-air solutions.
“Preparing for a future manufacturing facility here solidifies China’s future as a major market for and manufacturer of heavy-duty emissions control products.”
