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Corning Watch: Diesel-engine products in position to rev up

Post Time:Jan 16,2012Classify:Company NewsView:359

While display glass and Gorilla Glass grab most of the headlines where Corning Inc. is concerned, there's another story brewing at the Fortune 500 company.

 

It's the long-awaited takeoff of the company's diesel-engine pollution control products for big trucks and other heavy-duty vehicles.

 

Two factors are contributing to what Corning says could be a tripling of demand in the next five years: increased production of vehicles and tightening of global air pollution regulations.

 

In the United States and Canada alone, production of heavy duty diesel vehicles is expected to grow from about 125,000 in 2010 to about 225,000 this year.

 

Globally, the number of heavy-duty diesel vehicles is expected to more than double by 2014.

 

All of a sudden, Corning is sold out of its Celcor substrates and DuraTrap filters for the big diesel rigs. That leaves the company in the enviable position (certainly the glass guys are jealous) of being able to raise prices, which it did this month.

 

The business will also add a new factory -- with the location to be announced during the first quarter of this year. A significant portion of the factory's output will be directed to manufacturers with whom Corning recently announced long-term supply contracts.

 

If things go as expected, the growth of the heavy-duty diesel business could help lead to an increase of up to 40 percent in sales for Corning's Environmental Technologies segment. Sales totaled about $1 billion in 2011, up 20 percent from 2010, and could hit $1.4 billion by 2014, estimates Mark A. Beck, senior vice president and general manager.

 

Around the globe, regulations requiring reductions in diesel pollution are taking effect over the next decade. The new rules are scheduled in Europe, Japan, China and India.

 

North America and Europe are tightening the standards for off-road diesel equipment.

 

Although Corning has not named the manufacturers with whom it signed long-term supply deals, they include the makers of trucks, engines and construction and agricultural equipment.

 

Corning Environmental Technologies also makes pollution control devices for gasoline-powered cars and trucks and light-duty diesel vehicles. It is expanding its production of gasoline engine products in China both this year and next year.

 

So when Corning Inc.'s profits are tallied up a few years down the road, you may hear the roar of a diesel engine competing with that of the gorilla.

Source: www.stargazette.comAuthor: shangyi

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