Yesterday, Corning Incorporated GLW announced its plans to invest in a new Gen 8.5 liquid crystal display (LCD) glass substrate finishing facility in Chongqing. The company did not divulge the funding level for this venture.
The New Facility
The new finishing facility is set to become the company’s second LCD plant in China, the first one being a melting and finishing LCD plant in Beijing.
Driven by strong demand for LCD substrates in China, this investment will help Corning to serve panel makers in the country more efficiently via localized glass supply.
Land of Laptops
Chongqing, also known as the “Land of Laptops”, is a key city in Southwest China and one of the five national central cities of the country.
John Zhang, deputy general manager of Corning Display Technologies, at a special signing ceremony hosted at Corning’s headquarters said that they selected Chongqing because it offers advanced and modern infrastructure. He went on to say that “it is a strategic location for investment given its importance to the IT and display industries. Investment in this facility will help us better serve our customers throughout China."
Corning and China
Corning has been on the Chinese turf since the early 1980s. Li Fang, president and general manager of Corning Greater China, is of the view that this investment is the latest highlight in the company’s support of China’s display industry.
Signing the investment agreement at the ceremony with Tang Zongwei, executive deputy director of the Chongqing Liangjiang New Area facility, Alan Dowdell, president of Corning Display Technologies China, said that this investment augments their position as the top supplier of premier quality LCD glass substrates in China.
China, for a change, also seems excited about this investment.
According to Zongwei, "As a U.S. Fortune 500 company, as well as a world-leading supplier of glass substrates used in LCD and OLED applications, Corning continues to make significant investments in China to support the development of local industries.”
Corning has a Zacks Rank #3 (Hold).
Some better-ranked stocks in the industry are Synacor, Inc. SYNC, PetMed Express, Inc. PETS and Stamps.Com Inc. STMP. All these stocks carry a Zacks Rank #2 (Buy).
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