South Korean chemicals and textiles company Kolon Industries Inc announced it plans to invest KRW 70 billion (US$ 48 million) to build a new plant in Vietnam to produce airbag materials for Sweden’s Autoliv, one of the world’s largest airbag and seatbelt systems manufacturers. The announcement follows an agreement between the two companies, in which Kolon agreed to increase supplies of airbag materials.
Kolon, understood to be the world’s second-largest supplier of airbag materials, confirmed it will build the new production facility in Ho Chi Minh City, with operations scheduled to begin in 2028. The company already has a plant in Vietnam producing airbag cushions using fabric imported from South Korea and China.
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With the new plant, Kolon will have a fully-integrated airbag manufacturing operation in Vietnam, including both fabric and airbag production. It is expected to generate KRW 50 billion in annual sales by 2030, when it becomes fully operational. The company also has airbag manufacturing operations in South Korea, China and Mexico.
Kolon’s CEO, Huh Sung, said in a statement: “This long-term supply deal demonstrates that Kolon Industries’ automotive materials capabilities are recognized globally.” Autoliv’s executive vice president, Christian Swahn, confirmed that Kolon is one of its most trusted partners.
