CORNING, N.Y. (AP) — Glass and specialty materials maker Corning Inc. said Wednesday it expects to spend as much as $1.7 billion on capital costs next year as it seeks to boost production of flat-panel television screens.
The biggest part of the company's $1.5 billion to $1.7 billion capital expenditures will go toward its display technologies division. Corning plans to direct $800 million to $1 billion to the unit for a new flat-screen plant in Japan and additional capacity at liquid-crystal display facilities in Taiwan.
''We expect that the LCD glass market will continue to grow into the next decade,'' said James B. Flaws, vice chairman and chief financial officer, in a statement. ''The LCD TV market is still in the early stages of adoption. We believe that consumers worldwide will replace existing (cathode ray tube) TVs with LCD TVs and expand the number of overall TV's per home.''
Corning expects the market for LCS glass will rise to 1.7 billion square feet this year, and to at least 2.1 billion square feet in 2008. The company expects LCD televisions will account for nearly half of all TVs sold worldwide next year.
Some of the company's planned 2008 capital spending will go toward the renovation of its research and development facility, and for additional production capacity at its diesel manufacturing factory.
Corning shares rose 8 cents to $25 in after-hours trading, adding to gains of 52 cents during the regular session.