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Release: November 26, 2003

Business Plan for Diesel-powered Automotive Exhaust Gas Purification Ceramics

NGK INSULATORS, LTD. (NGK; President: Shun Matsushita, Head Office: Nagoya, Japan) has invested a total of ¥10 billion in 3 major overseas plants producing diesel-powered automotive exhaust gas purification ceramics. Our aim is for total sales of ¥20 billion in 2005.

The demand for diesel-powered automotive exhaust gas purification ceramics is now expected to greatly increase as world emission controls become stringent. The present market is expected to become much larger. Therefore, we have been trying to gradually mass-produce our products at both domestic and overseas plants according to various demands. So far, NGK has invested a total of ¥10 billion at 3 major overseas plants with a goal of ¥20 billion in total sales in 2005.

Based on our advanced ceramics technique, our lengthy experience and results stemming from our gasoline-powered automotive exhaust gas purification ceramics HONEYCERAM® NGK is aiming to have a share of over 50% of the world market. The Company's policy is to foster our diesel-powered automotive exhaust gas purification ceramics business as to become as big as our HONEYCERAM® business.

1. Sales Target

Diesel-powered Automotive Exhaust Gas Purification Ceramics: ¥20 billion (in 2005)

2. Capital Investment Plan

So far, NGK has invested a total of ¥10 billion in 3 major overseas plants

1) China / NGK Ceramics Suzhou Co., Ltd.

  • Investment Details: Cordierite-made DPF (Diesel Particulate Filter) & HONEYCERAM® production facilities (including buildings)
  • Construction Period: May 2003 - December 2004 (start of production: January 2005)
  • Production Capacity: In the beginning, DPF 150,000 pieces/year. (HONEYCERAM® production capacity: 3 million/year)
  • Investment Amount: approx. ¥4 billion

2) U.S.A. / NGK Ceramics USA, Inc.

  • Investment Details: Large Size Monolith HONEYCERAM®, a cordierite-made substrate for oxidation catalytic converters production facilities
  • Construction Period: March 2003 - December 2003 (start of production: January 2004)
  • Production Capacity: In the beginning, 300,000 pieces/year
  • Investment Amount: approx. ¥3 billion

3) Poland / NGK Ceramics Polska Sp. z o. o.

  • Investment Details: SiC (silicon carbide)-DPF (Diesel Particulate Filter) production facilities (including land and buildings)
  • Construction Period: July 2003 - October 2004 (start of production: November 2004)
  • Production Capacity: In the beginning, 250,000 pieces/year
  • Investment Amount: approx. ¥3 billion

3. Trends in Demand / Production Plan for Each Product

1) Large Size Monolith HONEYCERAM®

  • This product is a cordierite-made substrate for oxidation catalytic converters for PM (Particulate Matter).
  • The demand for this product has been increasing in both Japan and North America since 2003.
  • This product, used for brand new and used cars, has been in high demand and has become our main business.
  • Isuzu Motors Ltd., Hino Motors, Ltd., Mitsubishi Fuso Truck & Bus Corporation, Nissan Diesel Motor Co., Ltd., Caterpillar, Inc. in U.S.A. have employed this product.
  • With the U.S.A. location as the main plant, NGK will manufacture this product in both Indonesia and South Africa.

2) Cordierite-made DPF (Diesel Particulate Filter)

  • This product is specifically used for large-size diesel vehicles (trucks and buses).
  • It has a low coefficient of thermal expansion and superior thermal shock resistance. Large-size products can be manufactured as units.
  • From and inclusive of 2005, NGK expects that the demand from Japan and North America will be much higher.
  • Toyota Motor Corporation and Hino Motors, Ltd. have employed this product. As well, several automakers in U.S.A. and Europe are expected to follow.
  • With our Nagoya Plant in Japan as the main plant, NGK's plants in the U.S.A. and China are scheduled to mass-produce these products.

3) SiC (silicon carbide)-made DPF (Diesel Particulate Filter)

  • This product has been used for passenger cars and small-sized diesel-powered vehicles.
  • It has a high heat conductivity and excellent heat resistance. A large amount of accumulated PM (Particulate Matter) can be combusted.
  • From and inclusive of 2005, the needs for passenger cars in the European market are expected to increase rapidly.
  • Matsuda Motor Corporation's monitoring, compact commercial vehicles have installed our products. In Europe, several auto manufacturers including Volkswagen have decided to adopt this SiC-DPF.
  • NGK is now planning to mass-produce SiC-DPFs with our Komaki Plant in Japan as the mother factory and our plant in Poland as our main one.
(Right) For oxidation catalytic converter for diesel-powered vehicles (Left) For three-way catalytic converter for gasoline-powered vehicles

HONEYCERAM®, a cordierite-made substrate for catalytic converters for exhaust gas purification
(Right) For oxidation catalytic converter for diesel-powered vehicles
(Left) For three-way catalytic converter for gasoline-powered vehicles

(Right) Cordierite-made (Left) SiC (silicon carbide)-made

Diesel Particulate Filter
(Right) Cordierite-made
(Left) SiC (silicon carbide)-made


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