[Company analysis] NGK Insulators, Ltd. (日本碍子)

「NGK Insulators, Ltd. (日本碍子)」is headquartered in Aichi Prefecture, and its main business is power insulators and ceramic products. They have the world's top share in the insulator market for electric power, and also the world class technological strength. This company have many products that have became the global standard. Recently, there is a strong tendency to release new environmental products, which account for about 60% of the total sales. The number of consolidated employees is approximately 20,115.

 

1. Company Profile

2. Summary and Features

3. Major Business

4. Financial Information

 

 

 

1. Company Profile

 

※Unit is JPY million, as of 2019

Company name	NGK Insulators, Ltd.
Company name (Japanese)	日本碍子
Date of establishment	Monday, May 5, 1919
Headquarters location	〒467-8530　名古屋市瑞穂区須田町2番56号
Capital	69,800
Consolidated sales	463,504
Consolidated operating profit	64,705
Consolidated total assets	863,636
Consolidated capital	489,245
Capital adequacy ratio	56.6%
Consolidated number of employees	20,115

 

 

 

2. Summary and Features

 
An insulator is a material used to insulate electricity from power lines. The material is mainly made by ceramic because it requires electrical insulation and weather resistance and mechanical hardness. In the past, in the case of high voltage insulators, the United States had the world's most technological strength. In order to making this insulater in domestically, this company was founded in 1919 and it was splitted off Insulator manufacturing department from「Nippon Toki(日本陶器)」 

Now, in the insulator industry,「NGK Insulators」has the largest share in the world, as well as the world class technology. In existing ultra-high voltage transmission lines, mono meters with a length of several meters are also used to ensure insulation. But other company cannot manufacturethe insulators for 100-mvolt (1,000 kV) ultra-high voltage transmission lines. In the world, it is said that there is only「NGK Insulators」can handdle that. 

Since the oil shocks of the 1970s, they have begun local production in the United States in 1973 and Belgium in 1977, in order to globalize their business. So this company has 50 years of oversea business history and even now they keep their  production and sales bases in 17 countries around the world. And the overseas production ratio is increasing every year.

Apart from the insulator business,「NGK Insulators」has various business fields such as "household water purifier" that uses a ceramic filter itself, "molecular sieve" that separates a specific gas from a mixed gas, and a megawatt-class power storage system. As for the sales ratio, ceramic business is about 60%, electricity is 20% and electronic products is 20%. In addition, this company handles a lots of environment-related products, and it accounts for about 60% of total sales.

 

 

 

3. Major Business

 

■ Power related business

■ Ceramics business

■ Electronic business

■ Process technology business

 

 

 

4. Financial information

 

※Unit is JPY million

		2016	2017	2018
Consolidated sales		401,266	451,125	463,504
Consolidated operating profit		63,212	70,026	64,705
Consolidated total assets		836,335	836,335	863,636
Consolidated net assets		472,863	472,863	489,245
Breakdown of sales	Power related business	52,799	54,408	49,802
	Ceramics business	244,959	267,762	251,442
	Electronic business	103,507	128,954	58,838
	Process technology business			103,421