Sony, Corning And Asahi To Build Tv Glass Plant

Business Wire, June 7, 1995

MT. PLEASANT, Penn.--(BUSINESS WIRE)--June 7, 1995 -- Sony, Corning Inc., and Asahi Glass America, Inc. announced the formation of a partnership to operate a television glass manufacturing plant on the site of Sony's Pittsburgh Manufacturing Center in Mt. Pleasant, PA.

The partnership, to be called American Video Glass Company constitutes a $300 million investment by the companies and will be operational in approximately 24 months. According to Suchiro Nakamura, senior managing director of Sony Corporation and chairman of the partnership, the project reinforces the forecast for continuing growth in the big screen television industry.

"For Sony, this strategic investment will further vertically integrate our key television component manufacturing and will strongly position Sony for the future," Nakamura said.

Donald R. Dicken, most recently vice president and director of technology and manufacturing for Corning Japan K. K., has been named President of American Video Glass. Dicken noted that plans call for a Fall groundbreaking for the 600,000 sq. ft. plant.

"We hope to be in production within about 20 month of groundbreaking," Dicken said. He also noted that initial employment would be approximately 500 once the plant is operational.

Commenting on the process of establishing the new glass plant in Pennsylvania, Nakamura said: "Federal, state and local officials have worked closely with us throughout the process of developing this project. With Governor Ridge's leadership and the efforts of the State Department of Commerce and Environmental Resources, we have developed a mutually beneficial framework for the establishment of a successful, long-term operation in Westmoreland County."

"I have committed Pennsylvania to a new perspective -- an employer-friendly environment free of tax and regulatory burdens," said Governor Thomas Ridge. "It is a perspective that deals with job creation first. Sony's decision to locate this new television glass manufacturing plant in Pennsylvania demonstrates their confidence in this perspective and their confidence in Pennsylvania's future." The Governor also said, "We are delighted to have such high caliber corporate citizens in the Commonwealth and we look forward to continuing our productive partnership with Sony and Corning."

"Sony, Corning and Asahi have growing operations in Pennsylvania, and American Video will be a valuable asset to the three companies and the State," said Dicken. Sony Electronic's Pittsburgh Manufacturing Center currently produces rear projection televisions and is the company's world headquarters for the design and engineering of that product. The facility, opened in 1991, also produces seven-inch cathode ray tubes (CRTs) for use in the rear projection sets and has begun manufacturing aperture grilles used in Trinitron direct view televisions. The plant employs approximately 700 people.

Sony Chemicals will employ approximately 100 people in its bar coding tape manufacturing operation at the Mt. Pleasant site, which will open by the end of this year.

Both Corning and Asahi operate a major television glass manufacturing facility, with approximately 1,000 employees, in State College, PA, which has been and will continue to be a Sony supplier. Furthermore, Corning has operated a manufacturing facility in Charleroi, PA, less than an hour from Mt. Pleasant, for more than 50 years. That facility, which employs approximately 600, manufactures Corning's Pyrex line of products. Another division of Corning, MetPath, based in Pittsburgh, is one of southwestern Pennsylvania's largest medical laboratory systems and employs more than 1,000 throughout the region.

According to Mr. Nakamura, "Sony is entering into this venture to meet future needs as the big screen television market continues to grow. We anticipate, initially, that the majority of the product from the new plant will go to our television manufacturing facility in San Diego where we produce Trinitron televisions and computer monitors."

Carl Yankowski, president of Sony Electronics Inc., expressed his pleasure at the announcement. "Building on 1994's more than 30 percent increase in the U.S. television market, the future holds much promise for Sony in the home entertainment market, specifically big screen televisions," he said. ""By 1998 it's expected that more than 32 million television sets will be sold in the U.S., up from 23 million in 1992.

"Sony will participate aggressively in that overall growth and American Video Glass will be a tremendous asset for us," Yankowski said. "In addition, we already know the Westmoreland County location is ideal with its work ethic and the high skill levels of the workforce, the level of education and research institutions, and the cooperation of the State. American Video Glass will find the same benefits and we're confident it will grow as our Pittsburgh Manufacturing Center has."

Sony Electronics has nearly 17,000 North American employees in sales, marketing, engineering and manufacturing. The nearly $8 billion company is engaged primarily in U.S. sales, although it exports about $500 million of products annually.