CORNING, N.Y., April 16 -- Corning Inc. announced yesterday it will close a plant in State College, Pa., eliminating about 1000 jobs. The plant, which makes cathode ray tube glass used in conventional televisions, is operated jointly by Corning Asahi Video Products and the US subsidiary of Japan's Asahi Glass Co.
Corning said CAV continued to experience a further weakening of NAFTA CRT glass sales in the first quarter, due in part to increased competitive pressure from imports. Corning's board has approved the action, and Asahi's board approval is pending.
James R. Houghton, Corning's chairman and CEO, said the decision to close the plant was difficult but necessary. "This business has been facing a declining customer base and significantly increased imports for several years, and it is now losing money," he said. "In our relentless drive to restore profitability to Corning, we cannot carry money-losing mature businesses."
Houghton added, "It brings us to the end of an era in the US color television business for Corning. This is unfortunate, but necessary. Color television was one of the many life-changing inventions Corning helped bring to society. It was a business that sustained our company for many, many years."
Corning said about half of the charges resulting from the shutdown will be cash and will be shared between the partners.
As a result of the closing, Corning said it will record pretax charges in the range of $140 million to $170 million in the first half of 2003, of which $62 million ($20 million after-tax and minority interest) will be recorded in its first quarter results.
For more information, visit: www.corning.com