Autoliv to set up airbag cushion plant in Vietnam
The investment in a state-of-the-art cushion and fabric plant is intended to meet expanded future airbag production needs for the growing Asia market.
Autoliv, the worldwide leader in automotive safety systems, has announced its plan to build a new state-of-the-art airbag cushion and fabric plant in Vietnam, serving Asia. The investment in the new textile facility is in response to customer demands and is intended to meet expanded future airbag production needs for the growing Asia market.
The new facility will be built in Amata City Ha Long Industrial Park, located in the northern part of Vietnam. The facility will showcase Autoliv's manufacturing capabilities utilising Industry 4.0 concepts by integrating new technologies into the operations. This is the first Autoliv investment in Vietnam.
"I am excited to open our first Autoliv facility in Vietnam. We continuously look for ways to improve our footprint and reduce our costs structurally, and the new plant will complement our existing footprint in Southeast Asia. With the significant growth in demand for our restraint system products in Asia, Autoliv Vietnam will play an increasingly important role in meeting our customer demands," said Colin Naughton, President Autoliv Asia.
The site area will be approximately 90,000 square metres. The new production facility is expected to begin production of airbag cushions for our airbag module assembly facilities in Asia by late 2025. When fully operational, the facility can employ up to 2,000 people.
Autoliv, through its group companies, develops, manufactures and markets protective systems such as airbags, seatbelts and steering wheels for all major automotive manufacturers in the world as well as mobility safety solutions, such as pedestrian protection, connected safety services and safety solutions for riders of powered two-wheelers. In 2022, the company states that its products saved close to 35,000 lives and reduced more than 450,000 injuries. The company has 14 technical centres, with their 20 test tracks. Global sales in 2022 amounted to US $ 8.8 billion.
Vietnam: strategic gateway to the ASEAN
Vietnam represents a strategic gateway for the company to the dynamic ASEAN markets and the larger Indo-Pacific region. ASEAN is currently the fastest-growing region in the world, with some countries’ strong economies growing by up to 8% annually. The projected volume of sales for 2030 is also high, at more than 4.5 million vehicles.
Over the past year, Vietnam is seeing increased investment from global automakers. In October 2022, Skoda Auto announced its plan to enter the Vietnamese car market in association with local partner, the Thanh Cong Motor Vietnam (TC Motor). Construction of a CKD assembly plant in Vietnam is to be completed in the first half of 2024.
In December 2022, the BMW Group partnered with Truong Hai Auto Corporation (THACO) to locally produce BMW vehicles in Vietnam, expanding its production network for vehicles in Asia, which includes BMW Group plants in India and Thailand, joint venture plants in China, and partner plants in Malaysia, Indonesia.
Vietnam already has VinFast, its home-grown electric carmaker, which began deliveries of the VF8 electric SUV to local customers in September 2022.
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