21 July 2005

Corning Incorporated announced that its board of directors has approved an additional investment of approximately $100 million for expanding its diesel products manufacturing facility in Erwin, NY. The investment is in addition to a $70 million expansion announced in February 2005.

The investment will provide more firing and finishing capability to meet anticipated market demand for the recently introduced Corning DuraTrap® AT diesel particulate filter substrate, as well as demand for substrates and filters for medium and heavy-duty diesel engine applications, said Corning. These manufacturing enhancements are expected to be fully operational in late 2006.

The earlier expansion, announced in February 2005, is currently underway and focuses on cutting, firing and finishing capability for the production of catalyst and filter substrates for medium and heavy-duty diesel applications. These manufacturing enhancements are also expected to be operational in late 2006.

Corning DuraTrap® AT is a new aluminum titanate-based particulate filter substrate, developed primarily for light-duty passenger car applications. In Europe, approximately half of all new cars sold this year are expected to be powered by diesel engines. Since their introduction by Peugeot in 2000, increasingly more models are fitted with particulate filters. German manufacturers made a voluntary commitment to introduce filters on all new car models by 2008. Until now, all passenger car filters utilized silicon carbide substrates from such suppliers as Ibiden or NGK. Corning expects that the Corning DuraTrap® AT filter will be used on selected diesel cars sold in Europe beginning later this year.

Particulate filters will be also used on on-road heavy-duty diesel engines in North America, forced by the US 2007 diesel emission standards. It is anticipated that mostly cordierite substrates will be used on heavy-duty engines.

Corning estimates that the global market for diesel filter and catalyst substrates will be approximately $250 million in 2005, and it could grow into a $1 billion market opportunity by 2008 as new US and European emission standards take effect.

Original plans for the Corning Diesel Manufacturing Facility were announced in October 2001 and the facility began production in 2004. It manufactures cellular ceramic catalyst substrates and particulate filters used in diesel exhaust aftertreatment systems.

Source: Corning (press release)