Corning Lays Out for More Glass

It will spend another $174 million to boost capacity in Japan.
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Corning

(GLW) - Get Report

says it will spend another $174 million to expand its display glass manufacturing capacity in Japan.

The Corning, N.Y., tech shop is expanding its production of larger, Generation 8 sheets of liquid crystal display, or LCD, glass used in TV screens that are 40 inches or larger.

Corning also said it won a contract to supply

Sharp

with its new, environmentally cleaner Eagle glass that is made without heavy metals such as arsenic.

In October, Corning allocated $425 million on the third phase of its LCD glass-manufacturing expansion in Taichung, Taiwan. Corning has spent more than $1 billion on expansion of its glassmaking capacity as flat-panel computer monitors and LCD TVs grow more popular.

Corning cautioned investors last week that the 15% growth it saw in LCD shipments in the first quarter will likely slow down in the current quarter. The company is calling for volume to remain flat or increase by 5% sequentially.

The company says it expects to start shipping the Gen 8 glass in the third quarter.

Corning shares closed down 9 cents Monday at $27.54.