Growth of the automotive business through higher value-added products and overseas production line expansion

「For automotive products, we will capture demand by bringing new gasoline sensors to market and expanding sales of GPF (gasoline particulate filters). We will also promote productivity improvements and optimization of the global production system, maintaining the business's position as a foundation supporting the Group's earnings.」

「In the short term, to address further regulatory tightening, particularly in Europe, we will prepare for mass production of the new gasoline sensor and develop products such as CO2 sensors, while seeking to capture potential demand beyond the existing market framework.」

「Although the internal combustion engine business is expected to gradually decline over the longer term as electric vehicles become more widespread, in the short term we will accelerate development of the new gasoline sensor to address further regulatory tightening, particularly in Europe. We will also begin preparing for potential demand for CO2 sensors and review pricing to secure an appropriate level of profitability during the medium- to long-term period of declining demand.」

「For the time being, we will respond to expanding demand resulting from the recovery of global vehicle production and tighter emissions regulations in each country, while seeking to maximize profits by improving productivity, optimizing the global production system and building a stable supply system. Although the internal combustion engine business is expected to gradually decline over the longer term as electric vehicles become more widespread, we will accelerate the development of new products such as gasoline sensors and electrically heated catalysts (EHC) in the short term to address further regulatory tightening, particularly in Europe.」

「In addition to conventional automotive products, we will accelerate the development of new products such as gasoline sensors and electrically heated catalysts (EHC), while also capturing the carbon-neutral-related markets expected to expand globally. We will broaden the business to encompass environmental applications in a broad sense and continue introducing high-value-added products.」

「To meet expanding demand resulting from tighter emissions regulations in each country and the recovery of automotive markets, we will build a state-of-the-art, highly efficient global production system and seek to maximize profits through higher production efficiency.」

「We will also focus on developing products that address new emissions regulations and the advancing electrification of vehicles, thereby strengthening business competitiveness and supporting sustainable growth.」

「In the ceramics business, we aim for sustainable growth by building a state-of-the-art, highly efficient global production system to meet expanding worldwide demand driven by tighter emissions regulations in each country and rising vehicle sales. In fiscal 2019, in addition to proceeding with the launch of the second China plant to produce GPF (gasoline particulate filters), for which demand is expected to increase significantly as China's emissions regulations tighten, we will steadily implement investment, centered on capacity expansion at the Thailand Plant for large Honeyceram products.」

「We will steadily advance the launch of new equipment, centered on the Thailand Plant, which produces Honeyceram, the Poland and Ishikawa plants, which produce sensors, and the second China plant, which produces GPF (gasoline particulate filters).」

「We will ensure the stable operation of the newly commencing full-scale production at the second plant in Poland, which produces SiC diesel particulate filters, and at the Ishikawa Plant, which produces NOx sensors, while steadily advancing the launch of the Thailand Plant, which produces Honeyceram.」

「We aim for sustainable business growth by promoting the development of high-value-added products to differentiate our products and steadily deploying state-of-the-art production lines overseas to build a highly efficient global production system.」