Autoliv Expands in the U.S.
Increases capacity for sub-components to meet growing demand
(Stockholm, November 22, 2012) – – –In addition to the recently announced new propellant factory in China, Autoliv Inc. (NYSE: ALV and SSE: ALIVsdb) – the worldwide leader in automotive safety systems – is adding a sixth processing facility at its Promontory, Utah location to meet growing demand for airbag gas generant. The company also announced plans to expand its Tremonton, Utah facility to keep pace with market growth for initiators and micro gas generators used in its airbag and seatbelt products.
The new facility in Promontory will add 20% more capacity to Autoliv’s existing global gas generant production capabilities. This capacity increase will position the company to take advantage of growing worldwide demand for Autoliv airbag inflators. Capital investment is expected to cost approximately $13 million.
Autoliv Promontory has been at the heart of the company’s airbag operations since the late 1960’s when the company began the airbag industry’s pioneering research to use solid propellants for inflating airbags. Today, the facility produces gas generant used to inflate the more than 50 million driver, passenger, side and inflatable curtain airbags that Autoliv builds in the Americas annually. It also houses the company’s state-of-the-art Airbag Recovery Center for the deactivation and recycling of airbags.
The company is also adding 33,000 sq. ft. (3,065 m2) to its Tremonton facility – already a leading global producer of initiators and micro gas generators for automotive safety products. The majority of floor space added in this $5 million expansion is slated for new production lines which could supply up to 30% more capacity when the space is fully utilized. Current plans call for just two new lines to be completed in 2013 adding 10% more initiator capacity.
The Tremonton facility has experienced double digit year-over-year growth for the past three years and expects this trend to continue into 2013. As well as enhancing initiator capacity, the plant is adding shipping and receiving docks to ensure timely distribution to Autoliv customers around the world. When completed in 2013, the two expanded Utah facilities expect to add nearly 50 employees to the labor force.
Only four weeks ago, Autoliv announced another expansion of it’s global airbag propellant capacity. It is a completely new facility in China that will raise this capacity by 25% on top of the enlargement of the U.S. facility. This is an investment of $33 million, Autoliv’s single largest capital expenditure ever.
Jan Carlson, President & CEO, Autoliv Inc. Tel. +46 8 587 20 600
Steve Fredin, President Autoliv Americas Tel +1 248 475 0423
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 more than 80 facilities with 50,000 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 2011 grew by 15% to US $8.2 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 Harbor Statement
This release 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 and various assumptions, and apply only as of the date of this report. Our expectations and beliefs 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. Because such statements involve risks and uncertainties, the outcome could differ materially from those set out in the statements. For a summary of such risk factors, please refer to our latest 10-K and 10-Q filed with the SEC. Except for our ongoing obligation to disclose information under law, we undertake 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.