Corning Incorporated told shareholders last week that its clean-air products for diesel engines continue to represent a strong growth opportunity for the company.
Thomas R. Hinman, vice president and general manager, Corning Diesel Technologies, will say that the company expects the total market for these products may exceed $1 billion by 2008. The demand is being driven by tightening emissions standards for cleaner air. In the United States, those standards will take effect in 2007, and similar measures will be introduced in Europe and Asia, he will say.
Hinman's remarks will come as part of Corning's annual meeting of shareholders at the Corning Museum of Glass.
As diesel engine makers strive to meet these cleaner-air standards, Hinman will note, many are turning to the diesel substrates and filters that Corning manufactures at its new facility in Erwin, N. Y. The substrates and filters dramatically reduce the amount of harmful gases and soot that diesel engines emit into the air.
Hinman will add that in 2001, Corning recorded $12 million in sales of its diesel products. Revenues increased modestly over the next three years. "But in just the first three months of 2005," he will say, "sales have already topped $20 million. This momentum is laying the groundwork for a growing business, serving both the passenger and heavy-duty markets."
The company is negotiating multi-year agreements with leading engine manufacturers to capture this market growth, he will say. He will add that 2005 is a critical year for securing these agreements, since engine makers are choosing technology platforms that will help them meet 2007 U.S. air quality standards.
Hinman will also detail the unique Corning material that it will use for a new filter the company expects to begin supplying to the European diesel passenger car market later this year. The material, aluminum titanate, is the basis for the new Corning DuraTrap® AT filter. "We are convinced that it will provide an excellent combination of performance, durability and cost effectiveness" for diesel passenger car makers, he will note.
He will also reiterate the company's plans to begin the next expansion phase on its diesel plant in Erwin, a 250,000-square-foot facility that opened early last year. Expansion will begin in June, he will say, "right on schedule for our growth plans."