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Release: August 26, 1998

NGK STARTS MANUFACTURING INSULATORS FOR UHV TRANSMISSION LINES IN CHINA

NGK Insulators, Ltd. (President: Masaharu Shibata, Head Office: Nagoya) will start manufacturing insulators for ultra-high-voltage ("UHV") transmission lines at its joint venture company, named NGK Insulators Tangshan Co., Ltd., in China. The opening ceremony will be held on September 3, 1998. Approximately 200 people are scheduled to attend the ceremony, including officials from the Chinese government, such as Ye Liansong (Governor, Hebei Province), Zhang He (Mayor, Tangshan), representatives from the power industry, Mr. Shibata (President, NGK Insulators, Ltd.) and Mr. Niwa, (President, ITOCHU Corporation).

NGK established the joint venture company in November 1996 as a production base in China in order to fully enter the Chinese market, where the demand for insulators is expected to grow with the sharp rise of power demand, and also to expand its share in Southeast Asia and the Middle and Near East. The plant has been under construction since April 1997.

The total investment in the plant is approximately $ 22 million. The production capacity is 1.8 million units of suspension insulators used for UHV transmission lines. In September 1998, when the operation starts, the initial output is to be one million units, all of which is to be exported to developing countries. At the beginning of 1999, the production of large-size suspension insulators for the Chinese domestic market is slated to start. NGK anticipates total sales of approximately 3 billion yen in the year 2000.

Information on the joint venture company

1. Name: NGK Insulators Tangshan Co., Ltd.
2. Establishment: November 7, 1996
3. Location: Tangshan New & Hi Technology Development Zone, Hebei, China
4. Paid in Capital: U.S. $25 million
5. Equity Owners: NGK Insulators, ltd. 76%
ITOCHU Corporation 19%
Tangshan High Voltage Insulator Works 5%
6. Chairman: Shoji Kobayashi (part-time)
Executive Managing Director
NGK Insulators, Ltd.
7. President: Kenji Morita (full-time)
former Director
NGK Insulators, Ltd
8. Product: suspension insulators for UHV transmission lines
Production Output: 1.8 million units / year
Sales income: ¥ 3 billion/year (anticipated in 2000)
9. Investment in plant: approx. $ 22 million
(plottage: 50,000m2 / building site: 20,000m2)
10. No. of Employees: approx. 550 (in 2000)
Outside view of the new plant1 Outside view of the new plant2

Outside view of the new plant


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