Corning Inc. will build a new facility in China to manufacture glass sheets for LCD panels made for 65-inch and 75-inch TVs by BOE, a Chinese electronics company.
    The $1.3 billion new facility will be built adjacent to a BOE plant in Heifei, the capital city of Anhui Province in eastern China, Corning Inc. announced Tuesday.
    Construction will begin in 2016 and production will begin in 2018, the company announced. BOE plans to start making 65-inch and 75-inch panels by the third quarter of 2018 for TVs produced by other companies.



    The facility is being built with assistance from the Hefei government. After government and commercial incentives, Corning Inc. will invest $460 million, primarily in equipment and precious metals for the operation. The investment includes $290 million in cash and $170 million worth of precious metals, used in the glass melting process.

    Corning Inc. and BOE have entered a long-term agreement under which Corning will supply Gen 10.5 LCD glass substrates for BOE’s larger-size LCD panels. Corning will use its Eagle XG slim glass for the substrates.

    “These will be the largest glass sheets that are being made in the industry,” said John O’Hare, communications director for Corning Glass Technologies.

    China has the largest TV market in the world, and the industry as a whole continues to move toward larger screens, O’Hare said.

    “The fastest growing segment of the LCD TV business right now is large-size TVs,” O’Hare said. “We experienced 30 percent growth in this part of the industry in 2015, so we expect very strong growth in this segment for many years.”

    Corning Inc. has supplied BOE since 2004, and already has several facilities near BOE plants in Beijing. Also, plans were announced in June for a new Corning Inc. glass finishing facility where BOE makes smaller Gen 8.5 LCD panels in Chongqing.