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October 28, 2016
NGK INSULATORS, LTD.

NGK to Expand Production Facilities for Ceramic Products for
Automotive Exhaust Gas Purifiers in China
NGK Also Commences Production for Gasoline Particulate Filters (GPF) for
Gasoline-Engine Vehicles

NGK INSULATORS, LTD. (President: Taku Oshima; Headquarters: Nagoya, Japan; "NGK") has announced its decision today to expand production facilities at NGK Ceramics Suzhou Co., Ltd. (Suzhou, Jiangsu, China; "NGK Ceramics Suzhou") to meet growing demand for HONEYCERAM catalyst carriers for automotive exhaust gas purifiers in China. Moreover, the Company will install production lines for gasoline particulate filters (GPF) that remove particulate matter from the exhaust of gasoline engine vehicles, and commence production for China.

NGK Ceramics Suzhou was established in 2001 as a production base for ceramic products for automotive exhaust gas purification in China. It began manufacturing HONEYCERAM in 2003. The product lineup increased alongside growing demand and NGK Ceramics Suzhou now produces HONEYCERAM, large-size HONEYCERAM, and diesel particulate filters (DPF).

As regards capital expenditure, plans call for investing approximately ¥12 billion to expand buildings on the premises and install production lines for HONEYCERAM and GPF. The HONEYCERAM production line will be an integrated production line featuring cutting-edge highly efficient production technology, realizing high productivity while conserving space, labor and energy. The GPF production site will be our second one, complementing NGK CERAMICS POLSKA Sp. z o. o. (Gliwice, Silesian Province, Poland; "NGK CERAMICS POLSKA"), a manufacturing subsidiary in Poland that is currently our only production site.
The Company plans to commence production of GPF in April 2018 and HONEYCERAM in the following September. Once the new production line is up and running, total annual production capacity for HONEYCERAM, large-size HONEYCERAM, DPF and GPF will expand about 25% to approximately 50 million units from the current 40 million units (HONEYCERAM equivalent).

GPFs are ceramic filters for removing particulate matter emitted from direct-injection gasoline engines. They have been developed based on DPF technology. NGK CERAMICS POLSKA began mass producing GPFs in January 2016. China has been tightening its automobile exhaust gas regulations, and in 2017 plans to adopt China V exhaust gas regulations nationwide, which are just as strict as the Euro 5 emissions standard in Europe. Moreover, the country plans to adopt China VI exhaust gas regulations nationwide, which are equivalent to the Euro 6 emissions standard, by 2020. Under China VI regulations, gasoline engine vehicles will be required to comply with particulate matter emission volume regulations, like diesel engine vehicles, and automobiles will require filters to remove particulate matter.

NGK supplies a variety of ceramic products for exhaust gas purification to leading manufacturers of passenger vehicles, heavy-duty vehicles, and construction machinery. To ensure an accurate response to demand trends for each product in each country, the Company has established an efficient global production and supply system with nine production sites* in eight countries around the world, including Japan. At the same time, NGK has conducted capital expenditures to bolster its production facilities in Japan and overseas in order to keep pace with increasing demand around the world. The Company plans to commence production at its No. 2 plant in Poland in February 2017 and at its new plant in Thailand in April 2018.
*Japan (Headquarters, Ishikawa Plant), Belgium, the U.S., Indonesia, South Africa, China, Poland, Mexico

NGK will continue to develop high-performance products that comply with stricter exhaust gas regulations around the world. By developing highly efficient production lines with the latest technology at overseas bases, the Company will build a reliable supply structure that addresses expanding demand.

Capital Expenditures

Investment amount: Approx. ¥12 billion
Production items: HONEYCERAM, GPF
Construction period: January 2017 August 2018
Start of production: GPF in April 2018, HONEYCERAM in September 2018
Production capacity: About 50 million units per year (currently 40 million units per year)
* Total for all products (HONEYCERAM, large-size HONEYCERAM, DPF and GPF), HONEYCERAM equivalent

HONEYCERAM  substrates for automobile catalytic converters

HONEYCERAM substrates for automobile catalytic converters

Gasoline particulate filter (GPF)

Gasoline particulate filter (GPF)


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