Autoliv Expands Airbag Capacity New Airbag Cushion Plant in Thailand

(Stockholm, 31 May, 2011)  –  –  –  To support the rapid growth in vehicle production and airbag fitment rates in Asia, Autoliv Inc. – the global leader in automotive safety systems – has begun the construction of an airbag cushion manufacturing plant in Chonburi, near Bangkok. Autoliv’s existing airbag cushion plant in Thailand opened just two years ago.

The new facility will have capacity to produce 4.6 million cushions corresponding to 15% of Autoliv’s global manufacturing capacity for “cut & sewn” textile cushions for airbag systems. Autoliv also produces 20 million highly automated “one-piece-woven” airbag cushions annually.

The new facility in Thailand will occupy 8,000m2 and employ 800 people – compared to 2,000m2  and 270 employees for the existing plant. 

The total investment cost is USD 9.4 million, not including the building which will be leased. The new facility will be located 10 kilometers from Autoliv’s current seatbelt facility in Thailand. Initial production will start in July this year.

The new plant, together with Autoliv’s facility in China, will enable Autoliv to produce 50% of its cut and sewn cushions in-house for the Asian markets.

The plant, constructed on 30,000m2 of land, has the potential to be expanded by 6,000m2 to a total capacity in excess of 10 million cushions if required to support the increasing demand for Autoliv’s products.

“This is a critical expansion to ensure that we have enough components for the rapidly growing demand in Asia for our safety products”, explained Jan Carlson, President and CEO of Autoliv Inc.

“Light vehicle production in Thailand is expected to grow by 75% between 2010 and 2015. In addition, we have strong export sales to other Asian markets, underpinned by a burgeoning safety awareness among Asian vehicle buyers”, Mr. Carlson added.  

Inquiries:
Jan Carlson, President and CEO, Autoliv Inc.  Tel +46-8-587 20 600

About Autoliv

Autoliv Inc., the worldwide leader in automotive safety systems, develops and manufactures automotive safety systems for all major automotive manufacturers in the world. Together with its joint ventures, Autoliv has 80 facilities with 46,000 employees in 29 countries. In addition, the Company has ten technical centers in nine countries around the world, with 21 test tracks, more than any other automotive safety supplier. Sales in 2010 grew to by 40% to nearly US $7.2 billion. The Company's shares are listed on the New York Stock Exchange (NYSE: ALV) and its Swedish Depository Receipts on the OMX Nordic Exchange in Stockholm (ALIV sdb). For more information about Autoliv, please visit our company website at www.autoliv.com

Safe Harbour

This report contains statements that are not historical facts but rather forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 (PSLRA). All such statements are based upon our current expectations, various assumptions, and data available from third parties and apply only as of the date of this report. Our expectations and assumptions are expressed in good faith and we believe there is a reasonable basis for them. However, there can be no assurance that forward-looking statements will materialize or prove to be correct as these assumptions are inherently subject to risks and uncertainties such as without limitation, changes in general industry and market conditions, changes in and the successful execution of cost reduction initiatives and market reaction thereto, increased competition, changes in consumer preferences for end products, customer losses,  consolidations or restructuring, divestiture of customer brands, fluctuation in vehicle production schedules for which the Company is a supplier, continued uncertainty in program awards and performance, costs or difficulties related to the integration of any new or acquired businesses or technologies, pricing negotiations with customers, product liability, warranty and recall claims and other litigations and customer reactions thereto, possible adverse results of pending or future litigation or infringement claims, legislative or regulatory changes, tax assessments, dependence on customers and suppliers, as well as the risks identified in Item 1A “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2010 and our most recent quarterly Report on Form 10-Q. Except for the Company's ongoing obligation to disclose information under the U.S. federal securities laws, the Company undertakes no obligation to update publicly any forward-looking statements whether as a result of new information or future events. For any forward-looking statements contained in this or any other document, we claim the protection of the safe harbor for forward-looking statements contained in the PSLRA.

 

About Us

Autoliv, Inc. is the worldwide leader in automotive safety systems, and through its subsidiaries develops and manufactures automotive safety systems for all major automotive manufacturers in the world. Together with its joint ventures, Autoliv has more than 80 facilities with 70,000 employees in 27 countries. In addition, the Company has 22 technical centers in nine countries around the world, with 19 test tracks, more than any other automotive safety supplier. Sales in 2016 amounted to about US $10.1 billion. The Company's shares are listed on the New York Stock Exchange (NYSE: ALV) and its Swedish Depository Receipts on the OMX Nordic Exchange in Stockholm (ALIV sdb). For more information about Autoliv, please visit our company website at www.autoliv.com.

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