21 February 2000

Johnson Matthey announced it will establish a new autocatalyst manufacturing facility in China. The new facility, which will be located in the Shanghai area, will have capacity to produce some 600,000 car catalysts and 1 million motorcycle catalysts per year. It will become Johnson Matthey's ninth autocatalyst manufacturing site worldwide.

China currently produces about 1.7 million passenger vehicles and 9 million motorcycles per year. From the beginning of this year all new cars manufactured in China have had to meet Euro I emission standards which require the fitment of autocatalysts. Other vehicles will have to meet these regulations from 1 January 2001. Nationwide emission regulations for new motorcycles based on the Euro I standards will also be implemented during 2001 and will require catalysts to be fitted to 2-stroke bikes.

Stricter Euro II standards are to be implemented nationwide in 2004. Cities such as Beijing and Shanghai are seeking to meet these stricter standards ahead of national legislation in order to tackle major air pollution problems in China's rapidly growing urban areas.

The new autocatalyst facility is expected to be in production at the beginning of 2001.

Source: Johnson Matthey