Corning announced on Tuesday that its joint venture with Asahi Glass America, called Corning Asahi Video Products, will cease operation of a State College, Pa., plant. The plant made glass for CRTs (cathode-ray tubes) used in conventional televisions sold in the North American market. The closing, expected to take place by the end of the second quarter, will result in the elimination of about 1,000 positions. "This business has been facing a declining customer base and significantly increased imports for several years and it is now losing money," James R. Houghton, Corning chief executive officer, said in a statement.
Three important factors led to Corning's announcement: a rising number of television imports, a shifting consumer focus away from CRT-based televisions to flat-panel and rear-projection televisions, and an overall decline in the North American market place for televisions or any CRTs, according to a Corning representative.