Full Operation on a State-of-the-Art HONEYCERAM Production Line Started at the Ishikawa Plant

November 20, 2015

NGK INSULATORS, LTD. (President Taku Oshima; Headquarters: Nagoya, Japan) today announced that it held a ceremony to start full operation of a state-of-the-art production line for manufacturing HONEYCERAM substrates for automobile catalytic converters. The line was built as an addition to NGK´s Ishikawa Plant.

This state-of-the-art production line, built as an addition to the Ishikawa Plant, is an integrated line incorporating NGK´s latest manufacturing technologies. The technologies were achieved in the "structural innovation in manufacturing" the Company had been working on since fiscal 2009, with the aim of building robust and efficient manufacturing sites. The new line, engineered to save space, personnel and energy, is both high in productivity and low in environmental impact. It is capable of approximately doubling the production volume per area, while reducing CO2 emissions roughly 30% (2,700 tons per year), compared to conventional facilities. With the addition of the state-of-the-art production line, the production capacity of HONEYCERAM at the Ishikawa Plant was bolstered from 8 million pieces to 13 million pieces per year.

The Ishikawa Plant started operation in 2011 as a second production base in Japan after the Head Office Plant (Nagoya City). In addition to assisting with the launch of mass production for new products and the development of new technologies, it plays a vital role in ensuring stable supply of products in the event of unforeseen events such as natural disasters. With the addition of the state-of-the-art production line, the Ishikawa Plant will not only help maintain NGK´s production and employment in Japan, but also function further as a mother plant for developing advanced production technologies for use in overseas production sites. In this way, NGK aims to secure its competitive capabilities in the global market.

Overview of the Ceremony for Launching Production
1.Time and date: From 10:00 a.m., Friday, November 20, 2015
2.Place: NGK INSULATORS, LTD., Ishikawa Plant (1-1 Nomi, Nomi City, Ishikawa Prefecture)
3.Attendance: Governor Masanori Tanimoto of Ishikawa Prefecture,
Mayor Teijiro Sakai of Nomi City,
President Taku Oshima of NGK INSULATORS, LTD., and approximately 30 other guests

Overview of Capital Expenditures including the State-of-the-Art Production Line

Investment amount: Approx. 3 billion yen
Additional structure area: 4,300 m² (Warehousing and dispatch area)
Production capacity: 5 million pieces/year
Construction start: May 2014
Start of operation: July 2015
New hires: Approx. 30 employees

Overview of the Ishikawa Plant
Location: 1-1 Nomi, Nomi City, Ishikawa Prefecture
Site area: Approx. 109,100 m²
Total floor area: Approx. 23,200 m²
Production items: HONEYCERAM, large Size HONEYCERAM, Cordierite diesel particulate filters (DPF)
Total investment amount: Approx. 15 billion yen
Start of production: July 2011
Production capacity: 13 million pieces/year
Employees: Approx. 200 (including new hires for the state-of-the-art production line)

Overview of Capital Expenditures including the State-of-the-Art Production Line

HONEYCERAM Substrates for Automobile Catalytic Converters
HONEYCERAM is a honeycomb-structure ceramic component used as a substrate for carrying catalysts that convert harmful elements in automotive exhaust, such as hydrocarbons (HC), carbon monoxide (CO) and nitrogen oxides (NOx), into harmless elements. NGK supplies most major automobile manufacturers around the world with HONEYCERAM from a global network of production bases spanning eight countries. The Company has produced more than 1.2 billion pieces of HONEYCERAM since mass production started in 1976.

HONEYCERAM Substrates for Automobile Catalytic Converters

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