Corning Inc.announced that it has entered into new long-term supply agreements with industry-leading, heavy-duty diesel engine, truck, construction and agricultural equipment manufacturers. The multi-year agreements will enable reliable supply to customers by reserving a substantial portion of Corning’s current and future diesel capacity for their needs, according to the company announcement.
Corning is a leading supplier of advanced cellular ceramic substrates and diesel particulate filters for the world’s major manufacturers of diesel and gasoline engines.
Mark A. Beck, senior vice president and general manager, Corning Environmental Technologies, told investors at the UBS Global Technology and Services Conference in November that demand for Corning’s heavy-duty diesel products could triple in the next five years due to tightening global regulations. Corning expects its overall Environmental Technologies segment to reach about $1 billion in sales this year and to grow to roughly $1.4 billion in annual revenue by 2014.
“This is an important step toward strategically managing capacity constraints and supporting key customers during a critical growth period,” Beck said. “We plan to optimize our current production capability, expand existing facilities, and invest in a new manufacturing facility to assure a reliable supply of diesel products to our core customers for years to come.”
Corning also plans to open a second dedicated heavy-duty diesel facility to support projected market needs. The global site-selection process for that facility is underway now, Beck said. The location will be announced in the first quarter of 2012.
“Corning remains committed to the emissions-control industry,” Beck said. “We will continue to invest in technology and capacity to support our strategic customers and their anticipated growth in emerging markets.”
