Corning Incorporated has entered into new long-term emissions-control 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 product capacity for their needs.
Corning is a leading supplier of advanced cellular ceramic substrates and diesel particulate filters for the world’s major manufacturers of gasoline and diesel engines. The company invented an economical, high-performance, cellular ceramic substrate in the early 1970s that is now the standard for catalytic converters worldwide. In 1978, Corning developed the cellular ceramic particulate filter to remove soot from diesel emissions. Corning continues to leverage its expertise in materials, processes, and manufacturing to develop advanced ceramic substrates and diesel particulate filters that help meet demanding mobile emissions requirements.
This is an important step toward strategically managing capacity constraints and supporting key customers during a critical growth period. “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.—Mark A. Beck, senior vice president and general manager, Corning Environmental Technologies
Beck 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.
In November, Beck also announced a price increase for heavy-duty substrates, effective January 2012, and Corning’s plan for a second dedicated heavy-duty diesel facility to support projected market needs. The global site-selection process for that facility is underway now. The location will be announced in the first quarter of 2012.