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July 10, 2014
NGK INSULATORS, LTD.

NOx Sensor Production Capacity to Increase 1.5-Fold

NGK INSULATORS, LTD. (President: Taku Oshima, Headquarters: Nagoya, Japan) announced today that it has decided to increase its production capacity for high precision NOx sensors, which are used for on-board measurement of nitrogen oxide (NOx) concentration in vehicle exhaust gas. NGK will increase its annual production capacity by approximately 1.5 times to 10 million units per year by October 2015, establishing a supply system to cope with expanding demand.

Demand for NOx sensors is expanding in conjunction with the tightening of exhaust regulations on diesel vehicles worldwide. To cope with this strong demand, NGK had increased its annual production capacity to 7 million units by fiscal 2013. Now, as demand is projected to exceed the current production capacity, NGK has decided to invest in expanding production.

The investment will add component manufacturing equipment at NGK's Komaki Plant and NGK CERAMIC DEVICE Co., Ltd. (both in Komaki City, Aichi Prefecture) and sensor assembly lines at NGK CERAMICS POLSKA Sp. z o.o. (Gliwice, Silesian Province, Poland). Overall, the investment will increase NGK's annual production capacity by approximately 1.5 times to 10 million units by October 2015.

NOx sensors are mounted in the exhaust pipes of automobiles. These sensors can measure the NOx concentrations in the vehicle exhaust emission in real time with high precision at the ppm (parts per million) level. The detected values of NOx concentration in the exhaust emission are then used in controlling the exhaust gas after being treated and in its on-board diagnosis (OBD).

Automobile exhaust gas regulations are being strengthened worldwide. With regard to diesel vehicles in particular, the regulations for NOx emissions, in addition to particulate matter (PM) emissions, are being further strengthened. Following the regulations currently in effect such as the United States' US10 emission standard, the European Euro 5 regulations and Japan's post new long-term regulations, the European Union will introduce Euro 6 after September 2014. The United States is also planning to introduce a next generation emission standard. The tightening of regulations will create the need for even higher precision exhaust gas processing systems, and the number of on-board NOx sensors is expected to increase accordingly.

As a leading company in the field of NOx sensors, NGK will establish a production system that is properly able to cope with the continued expansion in demand, thereby contributing to the preservation of the atmospheric environment.

NOx sensors for vehicles

NOx sensors for vehicles

Capital Expenditures

Investment amount: Approx. ¥3 billion

Production capacity: Over 10 million units/year (currently 7 million units/year)

Construction start: August 2014

Production start: Starting in phases through to October 2015



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