Corning secures long-term diesel supply agreements

By Bryan Sims | January 04, 2012

Corning, N.Y.-based Corning Inc., together with its emission control manufacturing segment Corning Environmental Technologies, has entered into new long-term supply arrangements with industry leading, heavy-duty diesel engine, truck, construction and agricultural equipment manufacturers. The multiyear agreements, according to the company, will enable reliable supply to its customers by reserving a substantial portion of its current and future diesel capacity for their needs.

“This is an important step toward strategically managing capacity constraints and supporting key customers during a critical growth period,” said Mark Beck, senior vice president and general manager for Corning Environmental Technologies. “We plan to optimize our current production capacity, 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.”

In November, Beck told investors at the UBS Global Technology and Services Conference that demand for Corning’s heavy-duty diesel products could triple in the next five years due to tightening global regulations. As a result, Corning expects its overall Environmental Technologies segment to reach approximately $1 billion in sales this year and to grow to roughly $1.4 billion in annual revenue by 2014.

Also in November, Beck announced a price increase for heavy-duty ceramic substrates, effective this month, and Corning’s plan for a second dedicated heavy-duty diesel facility to support projected market needs. According to a statement by Corning, site-selection for the facility is currently underway and anticipates that an announcement on the location will be released by first quarter this year.

“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.”

Corning is a leading supplier of advanced cellular ceramic substrates and diesel particulate filters for some of the world’s major manufacturers of gasoline and diesel engines, such as Volkswagen, in a collaborate effort to help the European automobile manufacturer maintain its leadership in the global clean diesel market. In the early 1970s, Corning invented an economical, high-performance cellular ceramic substrate that has now become the standard for catalytic converters worldwide. In 1978, Corning developed the cellular ceramic particulate filter to remove soot from diesel emissions.

 
 
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