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Release: August 29, 2001

NGK Ties up with De Dietrich of France for Glass-Lined Apparatuss

NGK Insulators, Ltd. (President: Masaharu Shibata, Head Office: Nagoya) and NGK's glass-lined apparatus manufacturing subsidiary, Ikebukuro Horo Kogyo Co., Ltd. (IHK, President: Osamu Kyo, Head Office: Tokorozawa, Saitama Prefecture), start business collaboration in September 2001, with De Dietrich based in France, the world's leading manufacturer of glass-lined apparatus. This alliance includes capital tie-up, and aims at strengthening NGK/IHK glass lining business operations in Japan.

These glass-lined apparatus are comprised of enameled steel which is superior in chemical resistance and thermal shock resistance. Therefore, these apparatus have been widely used for production equipment, such as reactors and tanks, in the pharmaceutical and fine chemical industries. As these industries are requiring multi-purpose plants, the need is increasing for new agitation technology, various types of sensors and ultra-low-temperature reactors.

De Dietrich has developed cutting-edge technology ahead of other companies, and has aggressively responded to customer demand, mainly in Europe and the US. The company's wide-ranging product line includes: removable and pitchable blades available for varied agitation; simulation software for modeling the effects of agitation; sensors able to instantaneously measure the temperature and pH while reaction is in progress; innovative sampling systems; ultra-low-temperature reactors, for which demand is increasing as apparatus in pharmaceutical manufacturing; half-coil reactors in which temperature can be precisely controlled with increased heat transfer performances; and specially designed reactors such as for high pressure and extra-large capacities up to 110 m3.

IHK increases its technical capabilities to world number one by introducing De Dietrich's state-of-the-art manufacturing technology for glass-lined apparatus and by making De Dietrich's glass technology its own standard. In addition, NGK receives distributorship of De Dietrich products, and aims to be the nation's leading manufacturer in this field. In a cross-licensing agreement, IHK licenses to De Dietrich its US and European patented Non Spark Glass Lining (NS-GL) technology which prevents accumulation of static charge and which has a high reputation in Japan. In view of safety, NS-GL is expected to be widely adopted in Europe and the US as it prevents accidents arising from static electricity. Both companies expand their businesses globally by offering expertise to each other. Furthermore, De Dietrich participates in management of IHK acquiring 12% of IHK's stock in order to strengthen the alliance. The context of the business collaboration is as follows:

  1. IHK introduces manufacturing technology of glass lining from De Dietrich.
  2. NGK receives distributorship of De Dietrich products for mainly domestic market.
  3. IHK licenses the NS-GL technology to De Dietrich.

Along with introduction of this technology, IHK increases productivity by investing in a new furnace. NGK aims at 5 billion yen in sales of glass-lined apparatus in five years, increasing from 3.5 billion yen currently.

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Outline of Related Companies

1. Company Name: De Dietrich
2. Establishment: 1684
3. Head Office: Strasbourg, France
4. Consolidated Shareholders' Equity: 300 million Euro (Approx. 33 billion Yen)
5. Consolidated Sales Amount: Approx. 800 million Euro (Approx. 90 billion Yen,
including 23 billion Yen in process systems equipment)
6.Total Number of Employees: Approx. 6,100 people
7. Description of Business: Engineering, manufacture and distribution of process
systems equipment (26%), heating equipment (36%) and railway equipment (38%)
1. Company Name: Ikebukuro Horo Kogyo Co., Ltd.
2. Establishment: 1923
3. Head Office: Tokorozawa, Saitama Prefecture
4. Capital: 200 million Yen (NGK acquires a 79% stake)
5. Sales Amount: Approx. 3 billion Yen
6. Number of Employees: Approx. 110 people
7. Description of Business: Manufacture of glass-lined apparatus
De Dietrich's glass-lined apparatus (Removable and pitchable blades)

De Dietrich's glass-lined apparatus (Removable and pitchable blades)

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