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Release: November 27, 2007
NGK Insulators, Ltd.

NGK to build clean-air products facility in Mexico

NGK Insulators, Ltd. (President and CEO: Shun Matsushita; Head Office: Nagoya, Japan) has announced to build a new facility in Mexico to manufacture ceramic DPF (Diesel Particulate Filter) and Large Size Honeycomb Substrate, made of cordierite, for rapidly increasing demand in Japan, US, and Europe.

Diesel emission regulations are expected to become tighter in each of the markets, represented by Particulate Matters and Nitrogen-Oxide. In addition to measures already in effect requiring the installation of DPF and Large Sized Honeycomb Substrate, projections call for dramatic growth in the use for construction equipment, agricultural equipment, large trucks and buses, and passenger vehicles. This growth in demand is expected to begin in the United States, where tightened regulations will go into effect in the year 2010. In order to meet this demand growth, NGK has decided to establish a new production facility in Mexico to manufacture Cordierite DPF, and Large Sized Honeycomb Substrate for DOC (Diesel Oxidation Catalysts) and SCR (Selective Catalytic Reduction Catalysts). Neighboring the large anticipated market, Mexico promises to become a key production base.

Ceramics (made of cordierite) for use in diesel exhaust cleaning systems

Ceramic Substrates for diesel after treatment system (Cordierite DPF and Large Sized Honeycomb Substrate)

Overview of new production facility in Mexico (planned)

Company name: NGK Ceramics Mexico, S.de R.L.de C.V.(provisional title)
Date of Establishment: January 2008
Paid-in capital: 1.1 billion yen initial investment (funded entirely by the NGK Group)
Note: Plans call for an increase in capital to 4 billion yen before the start of construction.
Location: Suburban Monterrey, Nuevo Leon, Mexico
Site area: 240,000 m2
Products: Ceramic Substrates for diesel after treatment system
(Cordierite DPF and Large Sized Honeycomb Substrate)
Production to begin: September 2009
Product sales area: Primarily the US

NGK has been supplying ceramic substrates for after treatment system of both gasoline and diesel engines vehicles. SiC (Silicon Carbide) DPF is served from the facilities in Japan and Poland primarily for the European market, where the diesel share accounts for approx. 50% of the new passenger vehicle sales. For the larger diesel vehicles represented by trucks and buses, NGK has offered DPF and Large Sized Honeycomb Substrate made of Cordierite through our facilities in Japan, China, US, and Indonesia, for the primary markets of Japan, US, and Europe.

With the addition of the state of the art manufacturing capacity in Mexico, NGK will have a very strong position in this rapid growing worldwide market followed by its accumulated technologies and experiences, as an only supplier to have the capability of serving both cordierite and SiC DPF.

Location of NGK Ceramics Mexico, S.de R.L.de C.V. (provisional title)

Location of NGK Ceramics Mexico, S.de R.L.de C.V. (provisional title)


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