NGK Insulators exits NAS battery production, restructures electronics business

NGK Insulators, Ltd. resolved to discontinue the manufacturing and sales activities of NAS batteries (sodium-sulfur batteries) under its Energy Storage Business, ceasing new orders. The decision, effective January 2027 for final shipments, follows challenges in achieving stable profitability due to high material costs and intensifying competition with lithium-ion batteries. The company expects to record extraordinary losses of approximately 18,000 million yen in the fiscal year ending March 2026 as a result.

Concurrently, NGK Insulators will implement an organizational restructuring, effective April 1, 2026. This includes a simplified absorption-type company split where the sales division of its wholly-owned subsidiary, NGK Electronics Devices, Inc. (NGKED), will be succeeded by NGK Insulators. Additionally, an absorption-type merger will occur, with NGK Ceramic Device Co., Ltd. (NCDK) as the surviving entity absorbing NGKED's manufacturing division to enhance efficiency and consolidate manufacturing know-how.

Despite restructuring expenses, NGK Insulators has revised its full-year consolidated financial forecasts for the fiscal year ending March 31, 2026. Net sales are now projected at 650,000 million yen, operating income at 85,000 million yen, and ordinary income at 82,000 million yen, all exceeding previous forecasts. Net income attributable to owners of the parent remains unchanged at 55,000 million yen. The company also announced an increase in its interim dividend to 38.00 yen per share and a revised year-end dividend forecast of 38.00 yen, totaling an annual dividend of 76.00 yen per share.