Corning Expands Optical Fiber Production Capability.

CORNING, N.Y., Feb. 2--(BUSINESS WIRE)--Corning Incorporated (NYSE:GLW) today announced that it is investing more than $150 million to increase the capacity of its optical fiber manufacturing facility. Located in Wilmington, N.C., Corning's facility is the largest fiber-producing plant in the world.

According to Robert C. Forrest, senior vice president and general manager of Corning's Telecommunications Products Division, this expansion is being achieved through a combination of new construction as well as through new manufacturing technologies developed by Corning which have improved the efficiency of its fiber production process.

"Our increased fiber-making capability will enable Corning to satisfy increases in demand and maintain our rigorous customer-service and consistent product quality standards," Forrest said.

The growth in worldwide demand for Corning fiber is being fueled by increased international requirements from a variety of markets. In addition, Corning is seeing higher demand from a variety of domestic system providers, whose use of fiber is growing as the much heralded Information Superhighway becomes a reality, according to Forrest.

"The recent surge in fiber demand has resulted in a tight industry supply situation, which has led to more stable prices in the fiber industry," Forrest said. "Our expectation is that there will be only moderate price changes over the next few years."

Due to recent manufacturing process enhancements, Corning expects to continue increasing its fiber production throughout the year. The remaining capacity increase, which will result from investments in equipment upgrades and new equipment, will begin in early 1997.

Overall, Corning expects to increase its fiber making capability by more than 50 percent over the next two years.

Corning has expanded the capacity of its Wilmington facility several times within the last five years, while the market experienced high growth. This latest expansion is designed to meet the more stable growth and worldwide market conditions of the current environment.

Corning Incorporated, with headquarters in Corning, N.Y., is a worldwide supplier of optical fiber. The company developed the first commercial low-loss optical fiber in 1970, a breakthrough which helped launch the optical communications industry.

Corning competes in four business segments: specialty materials, communications, laboratory services and consumer products. Revenues in 1994 totaled $4.8 billion

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