1
2

Message from the President

3
3

We believe that the 21st century will be known as "the century of3environment." Progressive environmental legislation, such as Electric
4

Appliances Recycling Law and Green Purchase Law, has been in effect5since April 2001, helping us build a resource-recycling society.

6

As you may know, we must approach the preservation of the environment

7

on a global basis, as it relates to problems such as global warming and7

depletion of the ozone layer. Everyone must be aware that it is mostimportant to tackle these problems immediately.

8

NGK SPARK PLUG CO., LTD's worldwide business network has been
8

working to protect the global environment, which we believe is one of our

8most important responsibilities as society becomes ever more aware of9environmental problems.

9

In 1974, we established a division responsible for environmental affairs,
which ensures that we comply with the laws designed to protect the9environment. Our company's goals include saving energy, reducing waste,

10

and controlling harmful materials, toward the preservation of the global

10

environment, in accordance with our "Environment Preservation Policy"

11and "Action Schedule for the Environment." Moreover, we obtained ISO

1114001certification, an international standard for environmental

11

management systems at all our domestic factories last December.
In the near future, we will expand our environmental management system

12

to reach our affiliated companies both in Japan and overseas, to make the12

NGK SPARK PLUG group an active participant of the recycling economic

13

society and an environmentally friendly company at large.

13

We are now seeking to accomplish each of our five goals: preventing air,

14

soil, and water pollution; saving energy; reducing and reusing waste;

14

designing environmentally friendly products; and managing the company ina way that considers the environment of the local community.

15

We hope this report has given you an idea of our efforts and achievements
15

to preserve the global environment through the fiscal year 2001. Please

16
16
16
16
17
17
17
17
18
20

know that we will continue to work to protect the environment. We
Scope of this Reportwelcome your comments.

This Report shows you wide variety of efforts
by NGK SPARK PLUG CO., LTD to get rid ofenvironmental burden during the fiscal year
2001 (April 2000 - March 2001).
The articles cover the situation as of the end of
fiscal year 2001, except for some plans andnumerical targets to be accomplished in andafter April 2001.
The articles also introduce our affiliatedcompanies obtaining the ISO 14001
authorization.

21

1

Environmental management system
Million yen

250,000
OthersCeramics
224,268
Spark-plug-related
3,430
products

196,6972,430

200,000

190,332
3,442

188,743

171,5443.479

150,000

79,25691,902
89,37576,312

198,644
3,625

3,625

179,756
2,582

195,594
2,336

168,072

169,776

3,491

2,297

104,01279,62775,21874,361

Our corporate philosophy
consists of three elements.

99,384

77,964

Always be a propositional-typecompany to transmit new values tothe world.

as of June 30, 2001
Company Name: NGK Spark Plug Co., Ltd.
Head Office:14-18 Takatsuji-cho, Mizuho-ku, Nagoya,
Aichi Pref.
Founded:
October 26, 1936
Capital:47,854.26 million yen
Business
Manufacturing and selling spark plugs
and related products for internal- combustion
engines
Manufacturing and selling new ceramics
and applicable products
Number of Employees: 5,568
Head Office/Factory
1,045
Komaki Factory
2,937
Kagoshima-Miyanojo Factory541
Ise Factory
453
Others592

We are making earnest efforts to preserve global environment as one of the company's
key assignments. We have established "NGK's Declaration for Environment",
Environment Policy and Action Schedule, reflecting our corporate philosophy that
supports our operations.
To achieve this action schedule, every sites and sections sets its goals every year withall our people buckling themselves to preserve global environment.

100,000

107,634
113,630

109,899

116,825

102,364
50,00087,79991,75390,221

89,516

95,6350ParentFiscal year

Consolidated

1997

1998

1999

2000

By bridging people with technology andmaintaining global-scale thoughts andviews, we will always seek what weshould be.

2001

Management Policy

Commitment

Action Guideline

We offer a working environment in which
each one of us is encouraged to makefull use of his or her personality andcapability. With all our power we arededicated to pursue management basedon trust and confidence.

With full use of the mostsuitable technology and ouraccumulated experience, we
continue striving to offer newvalues to people of the world.

Ever onward!
Always mindful of what is thebest course, we swiftly put it
into action.

Slogan2

Spark Plugs

Electronic Components

NGK Spark Plugs have been making
progress together with the history of NGKSPARK PLUGS CO., LTD. You can findmany kinds of products of superior quality
and made in consideration of the global
environment, enabling you to reduce
exhaust gas and save energy, all as aresult of our research and development ofmany years. The advanced technology,
high performance and fine quality ofthese products are highly evaluated andadopted by automobile, motorcycle andmultipurpose engine manufactures allaround the world.

Today electric components are more andmore needed in this IT society. They are
utilized for multiple purposes everywherein our society: high-frequency parts forterminal equipment such as mobile
phones, dielectric resonators for basestations, igniters for home gas
equipment.

Sensors

Cutting tools

In order to preserve the nature bycleaning exhaust gas, saving resources
and restraining global warming, we havebeen engaged in development ofappropriate sensors for that purpose andin making them into practical use. We willcontinue preserving the comfortableenvironment of the earth through thedevelopment and production of various
products such as oxygen sensors,
temperature sensors and knock sensors.

These cutting tools are used forprocessing automobile parts andindustrial machinery parts. With thehardness at high temperature and heatproof composition, the Ceramic Series
demonstrate excellent performance athigh speed cutting for cast iron and heat
resistant alloy.
Along with the Cermet Series for semifinishing and finishing, they are highly
evaluated by users.

Semiconductor Components

Fine Ceramics

n order to meet various demands forelectronic components with the context of
rapid expansion of telecommunications,
we serve wide variety of semiconductor
components: IC packages, multilayer
circuit substrate for high frequency andpackages used in microprocessors for
PCs reflecting cutting-edge technologies
adopting ceramics and organic materials.

Making use of the characteristics of new
ceramics, we serve bearing balls,
ceramic tube for VCB and other products
to various business fields. We are now
under development to put into practicevarious kinds of artificial bones and bonehead at hip joint (head of femur)
consisting of apatite hydroxide, zirconia
and so on by utilizing the strength andaffinity with a living body of new ceramics.

With established trust and confidence inside and outside the company, we aim to contribute to
the people of the world by creating and offering new values for the future.

We aim to create new values through all our corporate activities such as development, manufacture and sales of NGK
spark plugs and NTK new ceramics products as a company protecting the global environment and living in symbiosis withsociety.
In order to achieve this goal, we have compiled an environment action schedule based on our environment policy and will
promote management that can be continuously developed and constant corporate activities in consideration of thepreservation of the environment.

1. To accurately grasp the effect of corporate activity on the environment, set an environmental objectives
and targets. These should be reviewed regularly for a continual improvement of the Environmental
Management System (EMS) and performance for environmental preservation.
2. We will abide by laws, regulations, agreements and other demands we have agreed to concerning
environmental preservation.
3. Priorities in environmental measuresa. We will endeavor to prevent pollution in the air, soil and water.
b. We will promote energy saving.
c. In order to use resources efficiently, we will promote the reduction of waste and recycling and reusing
them.
d. We will endeavor to design and develop products with concern for the environment.
e. We will have high concern for the environment of the local community.
4. In order to achieve this Environment Policy, we will make sure our employees know of this policy, andconduct environmental education as well as publicity to improve the level of recognition among our
employees for environmental preservation. We will also ask related companies for their understanding
and cooperation, as well as disclosing information outside the company.

3

Environmental management system

Our specific plans to accomplish target actions
Environmental Management System
To realize our policy provided in the Declaration for the Environment, we have been making efforts to accomplish the"Environmental Action Schedule" planned in March 2000 with numerical targets for each factory by year and by policy.
The following table shows our targets and achievements for fiscal year 2001 and targets for fiscal year 2002(reviewed andrevised in March 2001).

Reduction of waste and promoting recycling

To obtain integrated authorization for the domestic 4 factories
and 3 affiliated companies
To establish and utilize a unified system for the whole company

Thorough separation of rubbish according to the standardized
guideline to reduce combustion and buried wastes
To reduce foul on plating by modifying manufacturing process
To utilize hard plastic materials as fuelPrevention of pollution in the air, soil and water
To promote replacing chlorinated organic solvents
To avoid using harmful chemicals and reduce them bymeans of separate collection
To review the manufacturing process

Promoting energy saving

Products development with consideration of
the environment
To review the packing materials for products
Measures against environmental deterioration caused bydisposal of wastes

Consideration for the environment of thelocal community

To introduce high-efficiency motors and inverters
Thorough energy control in production facilities
To apply good examples of energy saving to the whole
company

To carry out cleaning activities in harmony with local community
To participate in environment-preserving activities
conducted by local government

For the purpose of promoting cross-organizational activities to preserve the global environment, we established a division
responsible for environment-related issues in 1974. Ever since we have maintained and strengthened our efforts for theenvironment. At present we have a supervising organization "Environment Committee" responsible for preserving the global
environment, and sub organizations "Experts Committee" and "Experts Conference" at the center and each site of the company,
which is responsible for respective business fields. Under this structure, every department is engaged in environment-preserving
activities to accomplish the environmental plans and targets in accordance with our Environment Policy.

Central Environment Committee

Chairman: Environment & Safety Supervising Director
To discuss and give directions on cross-organizational environment-related issues,and to promote preserving activities
Held twice a year

Energy Saving Experts Committee

Chairman: Production Division Director
To discuss and review issues of environment preservation related to saving energy,
promote activities and report the results to the Central Committee.
Held twice a year

Wastes Experts Conference

Chairman: Vice-chairman or a board member of the Central Committee
To discuss and review issues of environment preservation related to reduction ofwastes, promote activities and report the results to the Central Committee.
Held at any time as appropriate (held twice in the fiscal year 2001)

Chemical Materials Experts Conference

Chairman: Vice-chairman or a board member of the Central Committee
To discuss and review issues of environment preservation related to chemicalmaterials, promote activities and report the results to the Central Committee.
Held at any time as appropriate (held 4 times in the fiscal year 2001)

Green Procurement Experts Conference

Chairman: Vice-chairman or a board member of the Central Committee
To discuss and review issues of environment preservation related to green
procurement, promote activities and report the results to the Central Committee.
Held at any time as appropriate (held twice in the fiscal year 2001)

Environment Committee/Experts Committee by site

Each department

45

Environmental management system

It is one of our key assignments to make out and systematically manage the costs and effects of environment preservation.
Therefore we started to build an environment-accounting system with reference to "Guidelines concerning understanding
and disclosing of the costs for environment preservation (provisional) published by Environment Agency in March 1999,
and disclosed "Expenses for environment preservation in the fiscal year 2000" for the first time in our Eco Report 2000.
This year we revised our guidelines according to "To ensure establishment of environmental-accounting system" publishedby Environment Agency in May 2000, and figured out expenses and investments for environment preservation.
In estimating economical effects arising out of our preservation activities, we have included only the effects expected on acertain ground, and excluded hypothetical effects.

(Million yen)

Environment preservation costs
Main items

Classification

Costs
withinthebusinessarea

Pollutionpreventing cost

Cost for preventing air and water pollution, etc.

Environmentpreserving cost

Cost for preventing global warming and ozone layer destruction, etc.

Resourcecirculation cost

Cost for reduction and disposal of industrial wastes, etc.

Upstream & downstream cost

Cost for recycling and reusing the products and packages, etc.

Management activity cost

Cost for training employees on environmental issues, building up
EMS, obtaining authorization, etc.

R&D cost

Cost for research and development of products contributable toenvironment preservation

Environment destruction cost
Other costs

ExpenseKomaki Factory
Kagoshima-Miyanojo
Factory
Ise Factory

NGK SPARK PLUG MFG(U.S.A.), INC.
NGK SPARK PLUG
INDUSTRIES EUROPE S.A.

Nittoku Unyu Co., Ltd.
Ceramic Sensor Co., Ltd.
Nittoku Alpha Service Co., Ltd.

CERAMICA E VELAS DE
IGNICAO NGK DO BRASIL
LTDA.
Oguchi Seiki Co., Ltd.
Kani Ceramic Co., Ltd.
Iijima Ceramic Co., Ltd.
Nakatsugawa Ceramic Co.,Ltd.

Nittoku Seisakusho Co., Ltd.
Nichiwa Kiki Co., Ltd.
Tono Ceramic Co., Ltd.
Kamioka Ceramic Co., Ltd.
Nansei Ceramic Co., Ltd.

w

Cost for protecting the nature, expanding green area, advertising forenvironment, etc.

ww

. t uv. comSocial activity cost

Investment

We are actively promoting the fulfillment of the requirements for authorization of the ISO 14001, an international standardizationfor environmental management systems (EMS), in order to strengthen our management of environment preservation activities.
First of all, our Head Office/Factory obtained the authorization in August 1999. The other three factories (Komaki, KagoshimaMiyanojo and Ise) followed in December 2000, along with an integrated authorization for the whole company based on ourcommon environment policy, manuals and standards
Among our affiliated companies, three in Japan and two overseas, have already obtained the authorization, and others will follow
to expand authorized sites in our group.

Compensatory cost for soil pollution, damages on nature, etc.
Other costs for environment preservation not applicable to the above classification(from Costs within the business area to Environmental destruction cost)

I

D

Total

Certificate of ISO 14001 registration

Effects of environment preservation
Effects of environment preservation (Amount/quantity of reduction
Economical effects by preservation activities
Amount (million yen)
Specific effects
in comparison with the fiscal year 2000)

Reduction of CO2 exhaust

Income by recycling

Reduction of SOx exhaust

Reduction of costs by energy saving

Berlin:009104823

7

Information of our authorized identity has
been registered on "TUV.com", aninternational third party authorizingorganization.
ID：0091048237
http：//www.tuv.com

We implement audit/inspect inside the company twice a year and receive third party audit/inspection every year in accordance with theReduction of wastes discharge
Reduction of final disposal of wastes

Reduction of costs for disposal of wastes

ISO environmental management system to enhance the capability of our system. The internal audit/inspection is conducted using
checklists by teams consisting of 190 registered auditors/inspectors from our employees.
In the two internal audits/inspections of 2001 (fiscal year), though 6% of all the audited/inspected items did not comply, none of themhad any serious defects but only slight ones, which were corrected promptly.
In the follow-up audio/inspection of 2001 (fiscal year) by a third party authorizing agency, they reported three defective items at our
Head Office/Factory and six at other three factories, but all of them were slight ones and were improved promptly.

67

Preventing pollution in the air, soil and water

Preventing pollution in the air, soil and water

We will endeavor to reduce the use, exhaust anddischarge of substances posing a burden on theenvironment to ensure preserving the environment.
Regulating the use and emission of substances that pollute the air, soil and water andreducing the burden on the global environment is a precondition for continuing ourcorporate activities. Now we are fully committed to the promotion of control and reduction ofsubstances posing a burden on the environment such as fully abolishing the use ofchlorinated organic solvents, which were formerly used for washing parts.

For the purpose of reducing a burden on the environment, we are measuring and checking data of the air, water, noise andground water at all of our factories. In the fiscal year 2001 we reported some data exceeding the standards of theagreement for preventing pollution provided by local governments. We have, however, identified the cause and took
necessary measures for not only the above items but .others exceeding self-regulation standards.
Since legislation concerning pollution and environment are becoming stricter year by year, and new laws are coming into
enforcement one after another, we will take thorough measures to reduce a burden on the environment to preserve it.
(Refer to pages 18 and 19 to see the environmental data by factory.)

The PRTR Law has been brought into enforcement for the purpose of control and reduction of harmful chemical materials
to human health and environment. We are building up a system to control these harmful chemical materials and making
efforts to reduce the use of hexachrome, chlorinated organic solvents and lead.
We are going to introduce a new control system utilizing our computer network to control chemical materials, andspecifying materials under our self-prohibition, self-restriction and self-control to reduce the quantity of use, exhaust,
discharge and movement.

No.

Chemical Materials

Handling
quantity(tonne/year)

Quantity of movement
Air

Water

Soil

Quantity of exhaust/discharge
Quantity of removal/disposal(consumption)on
Resolution
Products Supply Incineration
site

Quantity of movement
Intermediate
disposal

Reclamation

We have fully abolished the use of specific flon and 1.1.1-trichloroethene, which destroy the ozone layer from ourmanufacturing stages and have substituted them with other substances. We are promoting the switch over from flon to othersubstances for our air-conditioning when we renew our air-conditioning facilities.

We have already abolished all of the incinerators at four factories and all of 14 affiliated companies according to "the Special
Measures Law against Dioxin" brought into force in January 2000. We are also abolishing the use of chloride vinyl, which
may produce dioxin when it is burnt, to be replaced by substitute materials for covers over equipment and trays for shipmentof products.

We will have abolished this substance which was used towash parts by the end of 2003 by switching over to a
substitute substance, as targeted by September 2001 at
Komaki and Ise Factories, March 2002 at KagoshimaMiyanojo Factory and March 2003 at Headquarter
Factory.

Quantity of
movement topublic drainage

Zinc aqueous compound
Ethyl benzene
Non-chlorine organic solvent washing equipment (Headquarter Factory)

XyleneSilver and its aqueous compound
Chromium and trivalent chromium
compoundHexachromium compound

Purchase quantity of chlorinated organic solvents
kg/month

14,000

Cobalt and its compound
Inorganic cyanogens compound

Dichloropentafluoropropane

Komaki Factory

1,027

Dichloromethane
Tetrachloroethylene

Head Office/Factory

12,000Kagoshima-Miyanojo Factory

10,000Ise FactoryBronze aqueous sodium chloride(except complex chloride)

Trichloroethylene
Toluene

8,000

6,319

Lead and its compound

6,000

Nickel

1,026

Nickel compond
Di-n-butyl phthalate

4,000
1,753

Benzene2,240

Boron and its compound
Formaldehyde

2,519

Manganese and its compound
Molybdenum and its compound

Total

1,008

2,000

170

895
1,756

0
2000(fiscal year)763

2001(fiscal year)

1,103
2002(fiscal year/prospect)

The figures are rounded off making some diversity between the sum of each line and the total quantity shown.

89

Promoting energy saving

Promoting energy saving

We will endeavor to reduce the quantity ofenergy used to preserve the global environment

In order to reduce the discharge of CO2, the representative of global warming gas, we are switching the energy using at
combustion facilities such as incinerators to the natural gas. Kagoshima-Miyanojo Factory has decided to introduce a cogeneration power generator to reduce CO2 by making good use of total energy.

In order to reduce the quantity of CO2 emitted, which causes of global warming, we need touse energy such as electricity and gas efficiently. Fossil fuel, the source of these energies,
can dry out in the future. We are making every effort to reduce the quantity of energy(original unit) used by reconsidering the stages and through energy saving activities within
the company.

Quantity of CO2 discharge and progress in sales at four factories (combined)
Sales (ten million yen)

Quantity of CO2 discharge（tons-CO2）

2,500

140,000
Quantity of CO2 discharge（tons-CO2）

120,000

Sales (parent only)

2,000

100,000
1,500

80,000Kagoshima-Miyanojo Factory co-generation power generator

Construction period：September 2000〜September 2000

We are reducing the quantity of energy used in all the energy consuming facilities such as manufacturing facilities, related
machinery, and air-conditioning and lighting equipment used in our departments. In order to proceed with our measuresefficiently, our company has established in Energy Saving Special Committee, which considers, plans and confirms the effects
of matters related to energy saving.
Energy saving activities by the Energy Saving
Special Committee
Holding the Energy Saving Special Committee(theCentral Committee twice a year and the Local Committee
4 times a year)
Control of progress in the fiscal plan
Energy saving patrol by the Special Committee members
Emulation and development of good and efficient cases
Support for energy saving activities in each department
Providing information and enlightenment activities
concerning energy saving
Choosing a temperature control manager for every airconditioning facility for promotion of in-door temperature
control
Reduction activity of electricity used for OA facilities,
which are standing by in each office

Reduction of the quantity ofCO2：425（t-CO2/year）
Capacity：Generating power……1500（KW）
×2

60,0001,000

40,000500
20,0000 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 0
FY

No. ofmeasures

Quantity ofenergy saving（s）

A poster for the energy saving
activities, designed and madeby stuff members.

We are positively seeking to find ways to improve energy
saving effects through our daily enlightenment activities forenergy saving and application of energy control standards
for production facilities to our daily work.
Every year each department submits the year's energysaving plan and specific measures, which are carried out
steadily under approval and instructions by managers.
We apply the same policy to mid-term and long-termbusiness projects.

Emulation and development ofgood cases(booklet of energy saving cases)

2,000

250

Quantity of energy saving
No. of measures

200

1,500

150
1,000
100
500

50

0
1999

2000

2001

2002
targetSales (hundred million yen)

1.2

3,000
2,500

Energy original unit ＝energy consumption

Sales (parent only)

value added manufacturing
amountEnergy consumption(original unit)

1.0

2,000

0.8

1,500

0.6

1,000

0.4

500

0.2
0

0
1999

2000

2001

FY

"Original unit" is the petroleum energy s used per 1 million
yen in the amount of value added manufacturing.
"Value added production amount" is the actual amount of
production within the company calculated by subtracting theprocessing ordered outside of the company from gross sales
amount.
The quantity of energy consumption is measured with thes value in petroleum of the quantity of electricity andfuel used.

10

11

0
FY

Reduction and good use of wastes

Reduction and good use of wastes"The Basic Law for the Promotion of Building a Cyclical-type Society" was brought into
enforcement in June 2000. To establish a resource-circulation type society, we regard
waste-related issues as one of our most important challenges among the assignments forthe environmental preservation. This is because we seriously recognize that companies
which exhaust or discharge wastes are liable for disposal of such wastes. We will continue
promoting the activities to reduce wastes along with the activities to expand EMS to ouraffiliated companies.

We have reviewed the waste-reduction plan as a major challenge in our Environment Policy, and targeted the fiscal year
2003 for Kagoshima-Miyanojo factory and the fiscal year 2006 for the other factories as deadlines to accomplish the zeroemission. The zero-emission we aim at is to reduce quantity of waste discharge, and to reuse and recycle the discharged
garbage as much as possible. We have fixed our goal of zero-emission as a valid usage rate of more than 98% to beachieved by recycling and reusing combustion/buried wastes except for cigarette ends and other home garbage (2% orless).

Zero-emission achievement goal (Recycle and Reuse rate: 98% or more)KagoshimaMiyanojo Factory

We tackled separating and recycling wastes to be considerably reduced at all our domestic factories in the fiscal year 2001. As
a result, the gross quantity of discharge decreased to 11,566 tons, 29% decrease in comparison with 1999, and combustion
and buried wastes 2,390 tons, 43% decrease. Moreover, we improved the accuracy in measuring actual discharge quantity by
applying the common garbage-separation rules to all our factories.

※1
Valid usage rate(%)

Headquarter
Komaki Factory

Ise Factory

16,235 tonne

2001
2000
Bench-mark year Current achievement

408 million yen

11,566 tonne

Recycling the waste fluid after washing principal metal fittings

236 million yen

Miyanojo Spark Plug Production Department, Metal-fitting Section 2, Finishing Team
①History of efforts to recycle oil and water
Efforts and achievements

Fiscal year
98fiscal year

・Introduced the washing machine No.1
・Introduced the washing machine No.2
・Launched recycling by natural separation
・Introduced oil cleaners
・Introduced equipment for oil-water separation
・Identified the equipment and devices for recycling as a unit

99fiscal year
00fiscal year30％

01fiscal year

28％

21％
2001
(fiscal year)

2006 FY

Combustion/buried wastes

70％

72％

2000
(fiscal year)

2005

Recycled cost

79％

26％

2004

※1"The valid usage" consists of both reusing and recycling.

Recycled articles
Combustion/buried wastes

74％

2003

2002

2000
(fiscal year)

Cleaner

2001(fiscal year)

Oil cleaner / Oil-water
separation

Recycling by natural
separation

Equipment for recycling
waste fluid

General waste
5％<The aim and backbone of the improvement activity>
KagoshimaMiyanojo
26％
Total
11,566 tonne
Headquarter
8％
Ise
6％

Specialwaste fluid
28％
Komaki60％

Total
11,566tonne

Aim: To reduce industrial wastes discharged outside the company to the least

Backbone: To make the facilities usable at as little expense as possible for recycling

Waste metal
31％②Comparison of the results
Progress in quantity of recycling

Waste oil,sludge18％1) Frequency of washing increased
to 1.5 times, while the waste
fluid decreased to 20% of theinitial quantity.
2) Purchased quantity of new oil
reduced by 690L/month thanks
to utilization of recycled oil.
3) Use of well water reduced by
18% thanks to utilization ofrecycled water (2,600L/month).

Fiscal year

Waste ceramics
15％

Waste plastic
3％

Waste fluid

1998

1999

Waste fluid

Recycled oil

Recycled water

Recycled oil

2000 Waste fluid

Recycled water
(L)

0

12

1000

2000

3000

4000

5000

6000

13

Development of products kind to the environment

Development of products kind to the environment

High-performance oxygen sensors for car engines

We will progress with products kind to theenvironment in order to contribute to the theenvironmental preservation.
We have constantly presented products which contribute to energy and resource saving
and reduction of emitted gas in the automobile, telecommunications and generalindustries. We consider it our great corporate responsibility to contribute to theenvironmental preservation through our products. In the future we will expand our line ofproducts which will be even kinder to the environment and build a system ofenvironmental evaluation in each stage of design and development.

The NGK Spark Plugs and the NTK Sensors have been playing important roles in thedevelopment of the automobile industry. The Spark Plugs can draw out the full
performance of the engine and reduce the fuel consumption, thus contributing to energy
saving and reduction of emission gas. The sensor detects the temperature, combustionand emission to control the automobile in its most appropriate condition contributing to
reduction of emitted gas and global warming measures. In the future, we would like toexpand and develop our line of products, which will be even kinder to the environment.
Social trends

Vehicle trends

Direct Injection Gasoline
Engines

Trends of regulations against exhaust gas at each country

Igniter plug for rocket

Iridium IX plug

V-grooved centerelectrode plug
Improving Customer Satisfaction

CNG Automobiles

Demands for our electric parts are increasing all the more in the Information Technology Era. Meeting the needs forcompactness, higher density and speed on various electronic appliances and communication media components, we are also
conscious of the effects to the environment. We take energy saving and low electricity consumption into consideration,
whenever we design and develop various IC packages for PCs, computers, mobile communication machines, and ceramic
filters and dielectric filters for mobile phones.

Higher Output

Antenna switch module

Reduction of fuelConsumption

LEV/ULEV

Characteristic curve of the sensor aiming at shortening the feedback time

Conservation of Oil Resources
Enforcement of Fuel economy Regulation
and Alternative Sources of Fuel

Environmental ProtectionStricter Emission
Regulation, Use of Heavy Gasoline, andOBD- Compliance

The regulations against exhaust gas started in North America 30 years ago. They have been becoming stricter year by
year. "LEV- " of North America will be in enforcement in 2003, and "EURO 4" of Europe and the second regulations ofJapan will be in enforcement in 2005. They plan to set the standards of NMOG (HC except methane) and NOx as one
tenth(1/10) of current ones. In order to reduce this NMOG, we have developed an "Fast Light-OFF/Ultra Fast LightOFF/Oxyen sensor" which hastens the feedback control of engines, and a "Universal A/F heated exhaust gas oxygen
sensor" which controls engines to make air fuel ratio best for exhaust gas efficiency of catalyst. We offer them to the world
to help prevent the global warming.

Diesel Engine

Maintenance-free Cars

Dielectric filter

Plug requirements

Low Spark Discharge
Voltage

Improved Ignitability

Plug solutions

Sensor requirements

Sensor solutions

Ceramic package
Lightweight & Compact

Improved Startability

Spark Plugs for Direct
Injection Engines

Copper-cored Ground
Electrode Spark Plugs

M12 HEX 14 Small
Spark Plugs

HTC Glow Plugs

Platinum Plugs with
Multiple Ground
Electrodes

More Stable Air/Fuel Control

Feedback Control
Equivalent to Gasolinepowered Automobile andDetection of Catalyst Wear

Decreased Emissions

Long Life

Extra long Reach
Spark Plugs

Reduction of Harmful Emissions
Enhanced Emission Regulations

Petroleum Fuel Alternatives

Increased Freedom in
Engine Design

Improved Anti-fouling
Performance

Iridium Plugs

Social trends

More Durable Ground
Electrodes

Fuel Economy

Detects Deterioration ofNOx Catalyst in Gasoline
Dl Engines
Detects NOx in Diesel
Engines

Reduction of Emissions at Cold Start
Quick Startup of Feedback Control

Thick Film Type Oxygen
Sensors

Small Diameter
Glow Plugs

NOX Sensors

We provide ceramic products to various industries with the characteristics of heat resistance, abrasion resistance, electric
insulation and functionality. We are also developing environment equipment including temperature and humidity detection
apparatus and ozonizers.

Controls Automobile Stability

Detection of Combustion Condition

Metal Film Type
Temperature Sensors

Ultra Fast Light-off
Oxygen Sensors

Micro Air Flow Sensors

This is a highly reliable ozone producer using alumina ceramics and highfrequency and high-voltage power source. Using the antiseptic, deodorizing,bleaching effect of the high oxidation power of ozone, it is used in the field ofwater purification, air purification and deodorizing process. There is no
possibility of the secondary pollution, because ozone is decomposed into
oxygen naturally.

Ozonizer

Silicon Rate Gyroscopes

Knock sensor
Oxygen Sensors for CNG
Engines

LTCC multilayer circuit substrate

Improved Safety and Comfort

Detection of a Wide
Temperature Range

Highly Accurate andPrecise Measurement ofIntake Mass Air Flow

Organic package

Ignition Coils with
Combustion Sensors

14

Ceramic and Cermet cutting tools which have high hardness at hightemperatures are fit for the dry operation without using coolant. They prevent
environmental pollution by spattering coolant compared with former operation
with using coolant, and also reduce the consumption of electricity for oil
supplying equipment. They are used in various cutting tool fields.
Ceramic series

Exhaust gas oxygen sensor

15

Consideration for the environment of local community

Other environmental activities

Consideration for the environment of local community

To secure clean and comfortable living area, our employees positively practice cleaning activities in the neighborhood of
our offices/factories. The following table shows present conditions in the fiscal year 2001:

Head Office/Factory

Komaki Factory
Kagoshima-Miyanojo Factory
Ise Factory

April 2000
September 2000
October 2000
March 2001
October 2000
March 2001
July 2000
October 2000
July 2000
October 2000

Cleaning in the neighborhood of the factory
Cleaning around Sakae area in Nagoya City
Cleaning in the neighborhood of the factory

Green procurement means an activity to promote the environmental preservation by ensuring the following behaviors inpurchasing goods, services or raw materials:
Always purchase which sufficient consideration for necessity
Purchase things that have the minimum burden on the environment with priority
Purchase things from corporation, which are kind to the environment with priority
In the fisical year 2001 we asked about 200 companies to reply our survey on corporate attitudes to the environment andcooperate with us in our activities.
We plan to work in cooperation with our material-suppliers for more effective environmental preservation.
In addition, in buying office stationeries and daily necessaries used in the company, we encourage our employees to buy"eco goods" less harmful to the environment.
The green procurement rate of the fiscal year 2001 was 68%, increased by 28% from the previous fiscal year.

In order to promote the environmental preservation, it is indispensable for every employee to beenvironmentally aware and to practice it. Based on the education and training standard, we draw up
and regularly carry out education and training programs according to the environmental management
system: general education (training for new employees, general education in office), specialized
education (education for employees heavily engaged in environmental affairs, education for public
qualifications) and in-house environmental inspection education (training and education of inspector,
education to maintain capability of inspector).

Head Office/Factory

Komaki Factory

We have articles related to the environment in our monthly in-house gazette "Nittoku" since July 1998. We are also providing
information such as environment-related news and topics by using the intra-net within the company for enlightenment
activities.

Kagoshima-Miyanojo Factory

Ise Factory

Companies and organizations in the Central Region who are commonly earnest about environmental issues came together to form
the Environmental Partnership Organizing Club [EPOC] in February 2000 in order to realize a cyclical economic society.
We are one of the initial members. By sharing cross-industrial information and by cultivating each other, we as an EPOC member aim
to improve our environmental activities, helping an advanced environment region to form and a cyclical society to realize.
This club exhibits our multiple efforts including "Environment Freedom Statement" by member companies on our website, which isunder progress reflecting your evaluation.
EPOC Website: http://www.epoc.gr.jp

1617

Environmental data according to each factory

Environmental data according to each factory
Environmental data have been listed for the main control items in each factory. (The blankitems refer to raw materials not used in the respective factories.)
Each listed value is of our self-regulation and is stricter than that of related laws
ordinances, and pollution preservation agreements with the local cities and districts. We
are acting to prevent pollution by measuring each item according to the listed value andby maintaining our facilities for the environmental preservation.
We have promptly reported the items values of which exceeded standards of theagreement for the prevention of pollution to the local government, received guidance fromthem, traced the causes and took necessary steps and measures.
We also trace the causes and took appropriate measures on the items exceeding our selfregulation values.
Classifi
cationRegulation Self-regulation
value by law
value
Particles of sootAir

Classifi
cationAverage(mg/Nm3

NOX

(ppm)

SOX

(Nm3/year)

Air

pH

Water

Located in the central part of Nagoya
City and having a function of
headquarter and Automobile-related
Business Division, it works as a homebase of our factories in Japan andoverseas, affiliated companies andsales network.

Noise

Regulation Self-regulation
value by law
value
Particles of soot
NOX

(ppm)

SOX

(Nm3/year)

pHSS(mg/L)SS

BOD(mg/L)

BOD(mg/L)

n-hexane(mg/L)

n-hexane(mg/L)

Cyan(mg/L)

Cyan(mg/L)

Total chromium(mg/L)

Total chromium(mg/L)

Water

Chromium compounds (mg/L)
Bronze(mg/L)

Zinc(mg/L)

Lead(mg/L)

Nitrogen(mg/L)

Phosphorus(mg/L)

Colon Bacillus(cell number/cm3)

During the day

Average(mg/Nm3

Located in a rural area surrounded byplenty of green, this factory works as amain manufacturing site of Automotive
components group covering theconsistent production of NGK spark
plugs.

db

Noise(mg/L)

Chromium compounds (mg/L)
Bronze(mg/L)

Zinc(mg/L)

Lead(mg/L)

Nitrogen(mg/L)

Phosphorus(mg/L)

Colon Bacillus(cell number/cm3)

During the daydb*Values by the Agreement for the prevention of pollution determined by the local government (Values by Law where the local
government's value is not applicable)

All the values were within our self-regulation values.

The cause of PH exceeding the agreement value

the water overflowing from the cooling tower

Measures taken We equipped a neutralizing device before the final spigot. (September 2000)
The cause of BOD exceeding the self-regulation value the water drained from the septic tank.
Measures taken We cleaned the septic tank and made through water control on the water quality.
Other environmental data were within our self-regulation values.

Classifi
cationRegulation Self-regulation
value by law
value
Particles of sootAir

Classifi
cationAverage(mg/Nm3

NOX

(ppm)

SOX

(Nm3/year)

Air

pH

Water

Located at the joint point of Tomei andMeishin Freeways and near a junctionof Chuo Freeway, this factory isadvantageous for transportation fromand to other factories and affiliatedcompanies. It works as our largest
factory with the production lines of all
the divisions as well as a research
center.

Noise

NOX

(ppm)

SOX

(Nm3/year)

pH(mg/L)SS

BOD(mg/L)

BOD(mg/L)

n-hexane(mg/L)

n-hexane(mg/L)

Cyan(mg/L)

Cyan(mg/L)

Total chromium(mg/L)

Total chromium(mg/L)

Chromium compounds (mg/L)
Bronze(mg/L)

Zinc(mg/L)

Lead(mg/L)

Nitrogen(mg/L)

Phosphorus(mg/L)

Colon Bacillus(cell number/cm3)

During the day

Average(mg/Nm3SS

db*Values by the Agreement for the prevention of pollution determined by Nagoya City (Values by Law where the city's value is not applicable)

The cause of BOD exceeding the self-regulation value hydrogen solvent used as a substitute of chloride organic solvent.
Measures taken: We remodeled a part of the production lines to reduce the use of solvent and made thoroughcontrol on consistency of waste water.
Other environmental data were within our self-regulation values.

18

Regulation Self-regulation
value by law
value
Particles of soot

Water

Located in the Ise-shima National Parksurrounded by richness of the nature, thisfactory has a design and colors
harmonized well with the nature.
This factory produces semiconductor
component and electronic component asa main manufacturing site of Informationrelated Business Department.

Noise(mg/L)

Chromium compounds (mg/L)
Bronze(mg/L)

Zinc(mg/L)

Lead(mg/L)

Nitrogen(mg/L)

Phosphorus(mg/L)

Colon Bacillus(cell number/cm3)

During the daydb

The cause of noise exceeding the law-regulation value

singing of insects, as it was measured in September

Measures taken: We measured again in November and all the data were within the law-regulation values.
Other environmental data were within our self-regulation values.
Ise factory has a closed disposal system for wastewater. The wastewater is reused inside the factory after disposal.
Water discharged to outside the factory is limited to water used in lavatories and kitchens.
It is discharged after disposal in the combined septic tank.

19

Please let us have your opinions and comments.
We would like to ask you for filling out the following questionnaire and sending it to us by FAX.
How do you feel after reading this?

◆Comprehensibility
14-18, Takatsuji-cho, Mizuho-ku, Nagoya, Aichi Pref. 467-8525
General Administration Dept. Phone 81-52-872-5896
Fax 81-52-872-5999
Automotive Components Group
Spark Plug Div.

① Very easy to understand ② Easy to understand⑤ Very hard to understand④ Hard to understand◆Solidity (Quantity and quality of information)① Full ② Sufficient

2808, Iwasaki, Komaki, Aichi Pref. 485-8510
General Administration Sec. Phone 81-568-76-1211
Fax
81-568-76-1299③ Fair③ Fair

④ Insufficient ⑤ Poor

If there is anything that makes you impressed or satisfied in thiswould you let us know about it?

,

Automotive Components Group
Spark Plug Div.
Sensor Div.
Communication Media Components Group
Semiconductor Components Div.
Electronic Components Div.
Technical Ceramics Group
Cutting Tool Div.
Fine Ceramics Div.

Would you let us know any part in thisthat should be sophisticated or improved?

2238-1, Tahara, Miyanojo-cho, Satsuma-gun, Kagoshima Pref. 895-1802
General Administration Sec. Phone 81-996-53-2211
Fax 81-996-53-2215
Automotive Components Group
Spark Plug Div.

What do you expect about our environmental activities?

871-6, Hosokoshi, Enza-cho, Ise, Mie Pref. 516-1196
General Administration Sec. Phone 81-596-39-1511
Fax 81-596-39-1554
Communication Media Components Group
Semiconductor Components Div.
Electronic Components Div.

What is your position as a reader?
・User of our products
・People working at banks or investment companies
・Government officer
・People in charge of environmental issues at companies
・People of environment NGOs
・Student
・People living in the neighborhood of our offices/factories ・Shareholder
・Journalist
・People working at research and development
・Expert of environmental issues
organizations
・Others（

Public Relations Sec.General Administration Dept.
Phone 81-52-872-5896
Fax
81-52-872-5999
Environment & Safety Management Dept.
Phone 81-52-872-5980
Fax
81-52-872-5942
14-18, Takatsuji-cho, Mizuho-ku, Nagoya, Aichi Pref. 467-8525）●Thank you for your cooperation. Please fill in the following blanks if possible.
Name:

Sex

1、Male 2、Female

Age

Zip
Address
Phone
Occupation

Company nameDept./Sec.

Please kindly send this sheet by FAXNGK SPARK PLUG CO., LTD. General Administration Dept. Fax 81-52-872-5999 orEnvironment & Safety management Dept. Fax 81-52-872-5942
2021