“This is a critical expansion to ensure that we have enough components for the rapidly growing demand in Asia for our safety products,” explained Jan Carlson, President and CEO of Autoliv Inc. “Light vehicle production in Thailand is expected to grow by 75% between 2010 and 2015. In addition, we have strong export sales to other Asian markets, underpinned by a burgeoning safety awareness among Asian vehicle buyers,” he added.
The upgraded facility will have capacity to produce 4.6 million cushions corresponding to 15% of Autoliv’s global manufacturing capacity for “cut & sewn” textile cushions for airbag systems. Autoliv also produces 20 million highly automated “one-piece-woven” airbag cushions annually.
Spreading over 8,000 sqm, the new facility will employ 800 people, as compared to 2,000 sqm and 270 employees for the existing plant. “The plant, constructed on 30,000 sqm of land, has the potential to be expanded by 6,000 sqm to a total capacity in excess of 10 million cushions if required to support the increasing demand for Autoliv’s products,” Autoliv claims in a statement for the press.
Of course, this whole affair will cost Autoliv some USD9.4 million, not including the building which will be leased. The new facility will be located 10 kilometers from Autoliv’s current seatbelt facility in Thailand. Initial production is scheduled to start in July this year.
Together with the company’s facility in China, the expanded facility in Thailand will enable Autoliv to produce 50% of its cut and sewn cushions in-house for the Asian markets.
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