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On December 8, South Korea’s Kolon Industries signed a long-term supply contract with Autoliv, the world’s largest vehicle safety parts company. The agreement follows an MoU signed in April, under which Kolon Industries committed to increasing supplies of airbag materials.
In accordance with the contract, Kolon Industries will build a new airbag material production facility in Vietnam, which will commence operation from 2028 with the latest production technology. The facility is estimated to have an investment capital of approximately $48 million.
Autoliv is an automotive safety supplier that manufactures systems including airbags, seatbelts, and steering wheels for all major brands.
Meanwhile, Kolon Industries is operating a plant in Vietnam, specialising in producing airbag cushions. With the new investment, Kolon Industries will have a fully integrated airbag manufacturing operation in Vietnam, including both fabric and airbag production.
As reported by South Korea's Yonhap News, the new plant is expected to generate more than $33.8 million in annual sales upon operation in 2030.
Huh Sung, CEO of Kolon Industries, said, "This long-term supply deal demonstrates Kolon Industries' automotive materials capabilities are recognised globally. We will supply world-class airbag materials to Autoliv, one of our most important customers."
Christian Swahn, executive vice president of Autoliv, said, "Kolon Industries remains one of the company's most trusted partners, with production bases across Asia, China and North America. We look forward to continuing our cooperation in the future."
