Corning has dismissed allegations that it has violated its contractual obligations to Sakai Display Products Corp (SDP) concerning supply of glass substrates to the Japanese client.

"Corning is aware of media reports alleging the commencement of legal action in Japan involving our Japanese affiliate, CJKK, and SDP," said Corning in a press statement. "While we have not received legal notice or documents related to this matter - nor can we confirm that a suit has actually been filed - we can state unequivocally that there is no merit to any of the claims made in the media regarding meeting our contractual obligations to SDP.

The statement was released in response to a recent news story in Nikkei Asia which cited contract violation claims by SDP against CJKK (Corning Japan KK).

The Nikkei Asia report on November 28 said SDP buys all LCD glass from Corning's facility in Sakai, Osaka Prefecture, where the Japanese client is based.

An agreement by both parties allows the glass maker to sell to others only if it has extra capacity after fulfilling its commitment to SDP, but Corning has supplied glass to other panel makers without meeting SDP's needs first, the report said, citing a filing submitted to the Osaka District Court on Thursday.

But Corning maintained that it has met its obligations and delivered on its commitments to SDP, with the relationships between the two sides extending more than 10 years.

"Conversely, we have worked collaboratively with SDP over the past several years to address SDP's inability to meet its contractual purchase commitments to Corning. We have always done so because we value our relationship with SDP and all of our customers," said Corning in the press release.

Cornign said it looks forward to resolving the dispute "in a spirit of cooperation which has characterized our association over the years."