NGK Insulators, Ltd. has announced its decision to construct a new plant for large-size HONEYCERAM substrates for automobile catalytic converters for use in diesel vehicles at NGK CERAMICS POLSKA Sp. z o.o. (Gliwice), a manufacturing subsidiary in Poland. Furthermore, NGK will upgrade production facilities for silicon carbide (SiC) diesel particulate filters (DPFs) at NGK CERAMICS POLSKA.
NGK expects to enter into long-term supply agreements for ceramic products for diesel automotive exhaust gas purifiers with major customers. Accordingly, NGK will ramp up production capacity by investing approximately 37 billion yen in six production sites for ceramics products for automotive exhaust gas purifiers worldwide, including Poland. Through these investments, NGK will successively expand production capacity for ceramic products for cordierite automotive exhaust gas purifiers, with the view to increasing production capacity by around 40% by the end of fiscal 2013.
NGK plans to construct the new large-size HONEYCERAM (LSH) plant on a site adjacent to NGK CERAMICS POLSKA's plant for the production of SiC DPFs for use in passenger cars. Production at the new plant is scheduled to commence in January 2014, with a planned production capacity of units based on a conversion to standard models (8 million units based on conversion to HONEYCERAM). Furthermore, NGK will upgrade some production facilities for SiC DPFs at NGK CERAMICS POLSKA, with the view to increasing production capacity by around 20% by fiscal 2013 compared with the current level.Demand for ceramic products for exhaust gas purifiers is projected to expand mainly due to stricter diesel exhaust gas regulations worldwide and increased automobile sales volume centered on emerging markets. In response, NGK will establish a framework for the stable supply of ceramic products by executing capital investment of approximately 37 billion yen in production sites worldwide according to trends in each region and product demand. This is also to ensure that NGK fulfills its obligations under long-term supply agreements with major client manufacturers of diesel engines, large vehicles, passenger cars, construction machinery and so forth.
