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.
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.