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Release: July 24, 1997

NGK'S SUBSIDIARY LAUNCHED UPON THE PRODUCTION OF CERAMIC SUBSTRATE FOR AUTOMOTIVE EXHAUST GAS PURIFICATION SYSTEM

P.T. NGK CERAMICS INDONESIA, a subsidiary of NGK Insulators, Ltd. (President: Masaharu Shibata, Head Office: Nagoya) launched upon the production of ceramic substrate for automotive exhaust gas purification system, "HONEYCERAM®", in Indonesia. The opening ceremony was held on July 15th , 1997, with approximately 130 attendance including the people related to the Indonesian Government.

In Asia, due to the astonishing advance of motorization, the emission standards were introduced and have been reinforced. In accordance with that, the demand for HONEYCERAM is expected to increase steeply. NGK, to meet this demand, established a subsidiary for HONEYCERAM production in April, 1996 and started construction of its plant in June, 1996. The total investment is approximately 1.8 billion yen. The plant equipped with a NGK shuttle kiln has a production capacity of 3 million per year by forming green body imported from NGK in Japan. In the beginning of 1998, an initial large shipment of 1 million per year is scheduled.

P.T. NGK CERAMICS INDONESIA is now considering to establish a series of production line from forming to firing and increase their productivity up to 6 million per year by 1999.

New Company Information

1. Name: P.T. NGK CERAMICS INDONESIA
2. Date of Establishment: April, 1996
3. Location: East Jakarta Industrial Park
(Lemahabang, Bekasi,approx. 40km east of Jakarta)
4. Paid in Capital: U.S. $ 10 million
5. President: Tetsuo Sakai (Ceramics Products Business, NGK)
6. Investment in plant & equipment: Plottage: 77,000m2
Building Site: 10,000m2
Equipment: approx. ¥1.2 billion
7. Employees: approx. 80 (as of 1998)

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