Corning Shifting Some Production from Japan to South Korea

Corning Inc. (GLW) disclosed a plan to shutter part of a manufacturing facility in Japan and transfer that production to a site in South Korea, as the glass maker looks to move some work to a lower cost region.

The portion of the facility that will be affected at the Shizuoka, Japan, site is production of so-called Gorilla glass, which is strengthened cover glass that is used for mobile phones.

The move is tied to Corning's move last year to take control of a joint venture with Samsung Electronics Co.'s (SSNHZ, 005930.SE) business that makes LCD glass in South Korea. Corning already takes advantage of low-cost production in Asan, Korea, to produce LCD display glass and protective cover glass and is now intending to expand for production of Gorilla glass.

John O'Hare, worldwide communications manager at Corning, said the action would eliminate 189 permanent positions in Japan and another 15 non-sales staff and shared service jobs, as well as 138 contractor positions. In total, Corning employees about 30,000 full-time employees worldwide.

However, Corning intends to offer those employees a mix of contract replacement, transfer options and voluntary separation packages, Mr. O'Hare said.

Mr. O'Hare said the plan to shift production doesn't change Corning's total worldwide capacity. And Corning has no plans to close the remaining production at the Japan facility, which will still employee about 350 people after Corning closes a portion of the site by June 2015.

Corning late in January reported its fourth-quarter profit jumped as the company posted lower production and restructuring costs, though sales slipped.

Shares were unchanged after hours on Thursday, after closing the regular session down 0.6% to $19.54.

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