Corning To Consolidate Operations, Close Facilities
December 9, 2003
Corning Inc. will consolidate the manufacturing operations of its high-purity fused silica and fluoride crystal materials production into its Canton, N.Y., facility, and its fluoride crystals components finishing production into Corning Tropel's operation in Fairport, N.Y. These actions will result in the closure of Corning facilities in Charleston, S.C., and North Brookfield, Mass. Corning estimates the charges for these actions will be in the range of $70 million to $80 million pretax, with approximately 5% of the charge being cash. The company also estimates these actions should save about $12 million pretax on an annualized basis. Approximately 135 employees will be affected in Charleston and North Brookfield, though Corning intends to reassign about two dozen employees to other Corning facilities. Approximately 70 new jobs will be created at the Canton and Corning Tropel facilities as a result of the consolidation. According to James R. Steiner, senior vice president and general manager of Corning Specialty Materials, Corning's Semiconductor Optics business has been facing significant financial and operational challenges due to the extended down cycle in the semiconductor market. The consolidation of manufacturing operations will improve the long-term viability of the business and better position it to respond to current and projected market demand.
For additional details, visit http://www.corning.com .