Corning to locate new optical components production facility in Erwin, N.Y.

CORNING, N.Y.--(BUSINESS WIRE)--Feb. 12, 1997--Corning Inc. (NYSE:GLW) today announced it will recommend to its board of directors that its new optical components production facility be located in the town of Erwin, N.Y.

The new plant, when completed, will increase the company's manufacturing capacity of passive optical devices, which are used in communications, video and sensor systems.

Corning estimates the 200,000 square-foot plant could eventually employ 1,000 people. Construction work on the facility, which is in close proximity to the company's existing components plant and its research and development facility, could begin as early as the first of April. Initial deliveries of components produced at the plant are expected by the end of 1997.

Corning's Components Products Business is a leader in fiber-optic components and assemblies. The business is part of the company's Opto-electronics Group, which is comprised of companies and business units that supply optical fiber, cable and components for the development of new and expanding optical communications networks around the globe.

Corning finalized its site selection process after the executive board of Local 1000 of the American Flint Glass Workers' Union (AFGWU), chaired by president Steve Mandell, reviewed the tentative bargaining agreement and rendered final approval.

This agreement establishes a separate bargaining unit under the guidance of the Local 1000 president and the national American Flint Glass Workers' Union.

In making the announcement, Corning's chairman and chief executive officer, Roger Ackerman said, "I am pleased that Corning's new optical components manufacturing facility will be located in Steuben County, in the town of Erwin. Thanks to the hard work and cooperation of numerous individuals in the public and private sectors, as well as the AFGWU, we were able to address the expectations and requirements of all parties."

Highlights of the four-year contract include wage increases in each of the future years of the contract and a comprehensive benefits package including health, pension, investment, vacation, holiday and goalsharing bonus plans. This agreement also calls for measures to prevent layoffs of the plant's permanent workforce. The plant has an innovative work design with high employee involvement and team-based work systems.

"The decision to locate this manufacturing facility in New York State would not have been possible just a few years ago," continued Ackerman. "Governor Pataki and the legislature have dramatically altered, in a very positive way, the business climate in New York. We especially want to recognize the governor's staff within the Empire State Development Corp., the Steuben County Industrial Development Agency, the Steuben County Legislature, and the Town of Erwin for their efforts in bringing this project to a successful conclusion.

"In addition to concluding an especially important agreement with Local 1000, locating the plant in Erwin places it in close proximity to Corning's existing components plant, to the technical resources of our research and development facility at Sullivan Park, and to the business's experienced workforce. Having all of these elements of the business close together will increase the efficiency of our product design process and help shorten the product development cycle. For all these reasons, the selection of Erwin is the best thing to do for the business.

"On a more personal level, I have to say that it is especially gratifying to have this growing business located here in the Southern Tier, the community we consider our home."

Commenting on the announcement, New York State Governor George E. Pataki, said, "Three or four years ago, a Corning expansion in New York State would have been nothing more than a pipe dream. Corning's expansion here today proves that when you have smart government the private sector pays attention. Over the past two years we've cut taxes, eliminated costly bureaucratic red tape and created the right climate for companies to expand and create jobs."

The governor went on to say, "Corning's multi-million dollar investment speaks volumes about their renewed confidence in, and commitment to, New York State. I congratulate Roger Ackerman on his decision to stay and grow in New York. I'm proud to be able to add Corning to the growing list of companies, both large and small, who are contributing to New York's on-going economic renewal."

President of Local 1000, Stephen Mandell said, "Corning's decision to keep its new plant in the area is good news for everyone. The new plant will mean more jobs and more growth. We wanted to make sure those jobs stayed here and that's what we were able to accomplish."

President of the American Flint Glass Workers' Union, Lawrence Bankowski, expressed a position similar to Mandell's. "We are pleased that we were able to negotiate an agreement that is acceptable to both the union and to the company. This new plant will provide work for hundreds of union members and that's a positive thing for everyone; for the community, for Corning Incorporated, for its employees and their families."

Established in 1851, Corning Inc. creates leading-edge technologies for the fastest growing segments of the world's economy. Corning manufactures optical fiber, cable and components, high-performance glass and components for televisions, and other electronic displays and equipment for communications and communications-related industries; advanced materials for scientific and environmental markets; and consumer products. Corning's total revenues in 1996 were $3.7 billion.

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