Autoliv Increases Vertical Integration
Acquires textile assets from supplier
(Stockholm, November 16, 2011) --- To further increase its competiveness, Autoliv Inc. (NYSE: ALV and SSE: ALIV) – the worldwide leader in automotive safety systems – today announced that it has acquired the airbag cushion cut&sewn assets and intellectual property from Milliken.
Under the terms of the acquisition, Autoliv is acquiring the machinery and equipment, essentially laser cutters and sewing machines, and intellectual property to increase Autoliv’s capability and flexibility to produce cut&sewn airbag cushions. These assets produce around 7 million airbag cushions annually and account for approximately 7% of the global textile cushion demand for Autoliv airbag systems.
“This is another step to take further control of our important core competencies” stated Steve Fredin – President of Autoliv Americas. “This, along with other initiatives in South America to increase vertical integration capacity for inflators and steering wheel armatures, will help to maintain our competitiveness in the market place” added Fredin.
In the Americas, the company expects cut&sewn airbag cushion volumes to increase by more than 8 million units or 30% over the next three years. The transaction will not affect Autoliv’s net sales, since Autoliv has been the exclusive buyer of these cushions from Milliken, but will provide other advantages. Terms and conditions were not disclosed for this transaction that closed on November 14, 2011.
Inquiries:
Jan Carlson, President & CEO, Autoliv Inc. Tel. +46 8 587 20 600
Steve Fredin, President Autoliv Americas Tel. +1 248 475 9000
About Autoliv
Autoliv Inc., along with its joint ventures, has 80 facilities with 48,000 employees in 29 countries. In addition, the Company has 10 technical centers in 9 countries around the world, with 21 test tracks, more than any other automotive safety supplier. Last twelve month sales amount to $8.1 billion, an increase of 13% compared to full year 2010. 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.
About Milliken
Milliken is an innovation company that has been exploring, discovering, and creating ways to enhance people’s lives since 1865. Our community of innovators has developed one of the larger collections of United States patents held by a private U.S. company. With expertise across a breadth of disciplines including specialty chemical, floor covering, and performance materials, we work around the world every day to add value to people’s lives, improve health and safety, and make this world more sustainable. For more information, visit http://www.milliken.com
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