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Release: January 31, 2001

NGK Starts Production of HONEYCERAM® in South Africa

NGK INSULATORS, LTD. (President: Masaharu Shibata, Head Office: Nagoya, Japan) will commence production of HONEYCERAM®, ceramic substrates for automotive exhaust catalytic converters in the Republic of South Africa. The opening ceremony for the new plant will be held on February 2, with about 150 people attending including government officials of South Africa and the President and CEO of NGK, Masaharu Shibata.

The South African government decided to extend its Motor Industry Development Programme (MIDP) up to the year 2007. The MIDP is an incentive programme to support the South African car industry in areas where it can be globally competitive. Local automotive manufacturers which export components generate export credits and this enables them to claim back duty on imports. As a result automotive manufacturers are increasing purchases of catalytic converters made in South Africa.

Responding to this market situation, NGK established NGK CERAMICS SOUTH AFRICA (PTY) LTD in February 2000, and began plant construction with a 2 billion yen investment in May 2000. Two shuttle kilns are installed in a plant on a 30,000m2plot with a 10,000m2 building. Semi-manufactured products that are formed in Japan and Belgium will be fired in this new plant with an annual production capacity of 6 million units. NGK CERAMICS SOUTH AFRICA is preparing for mass production and will commence shipping from April 2001.

NGK group companies are currently manufacturing HONEYCERAM in Japan, Belgium, the US, Indonesia, and NGK CERAMICS SOUTH AFRICA becomes the fourth overseas production base of NGK. The company plans to reinforce global wide production in order to produce premium quality HONEYCERAM at all of NGK's production bases.

Outline of NGK CERAMICS SOUTH AFRICA (PTY) LTD

1. Company Name: NGK CERAMICS SOUTH AFRICA (PTY) LTD
2. Establishment Date: February 2000
3. Location: Cape Town Airport Industria, suburb of Cape Town in Western Cape Province
4. Paid-in Capital: 60 million Rand
5. Controlling Share: NGK INSULATORS, LTD 95%, MITSUI & CO., LTD. 5%
6. President: Shun Matsushita (Managing Director and Group Executive, Ceramic Products Business Group of NGK INSULATORS, LTD.)
7. Number of Employees: Approx. 90 people
NGK CERAMICS SOUTH AFRICA

NGK CERAMICS SOUTH AFRICA


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