Autoliv Expands in Brazil Begins construction of airbag inflator facility
(Stockholm, November 8, 2010) --- In response to a new Brazilian vehicle safety law, Autoliv Inc. (NYSE: ALV and SSE: ALIV) – the worldwide leader in automotive safety systems – has begun the construction of an airbag inflator plant at its Taubaté location near São Paulo. The new law applies a “phased in” approach starting in 2011, requiring all new vehicles introduced to have a driver and passenger airbag by 2013. By 2014, all vehicles sold in Brazil must be equipped with frontal airbags.
Gas generators or inflators–the devices used to inflate an airbag–are currently imported from Autoliv’s plants in the United States and Europe. However, demand in Brazil is expected to grow sharply during the next few years, necessitating localized production for this component which typically makes up half the cost of an airbag.
The new facility will begin manufacturing airbag inflators mainly for driver and passenger side protection, and expects to increase its production for side-impact and rollover applications as consumer demand drives the local market. The cost for the building amounts to approximately 8 million U.S. dollars and provides 2,100 square meters (22,600 sq. ft.) of floor space for inflator production when fully utilized.
The new plant will increase Autoliv’s global inflator manufacturing capacity by roughly 7%. Autoliv currently produces inflators in six countries (China, France, Japan, Romania, Sweden and the United States) and accounts for more than 35% of the global inflator market. The customers of these plants include not only Autoliv’s own airbag assembly plants but also assembly plants of other airbag manufacturers.
Cars continue to become more affordable in the Brazilian market and the number of potential car buyers is experiencing a marked increase. As a result, Brazil is on track to overtake Germany as the world’s fourth-largest vehicle market this year.
Jan Carlson, President & CEO, Autoliv Inc. Tel. +46-8 587 20 600
Mike Ward, President Autoliv Americas Tel. +1-801 625 824
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 close to 43,000 employees in 28 vehicle-producing countries. In addition, the Company has technical centers in eleven countries around the world, with 21 test tracks, more than any other automotive safety supplier. Sales in 2010 are expected to grow to by nearly 40% to almost 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.
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