Kolon Industries announced on October 21 that it held a groundbreaking ceremony for an airbag fabric production factory in Ho Chi Minh City, Vietnam, on October 20. The ceremony was attended by Kolon Industries President Heo Seong, AMS Division Head Park Yong-woo, Christian Swahn, Senior Vice President of Purchasing at Autoliv, and Ali Elitok, Purchasing Director at Autoliv, among other executives from both companies.
The new factory, which will require an investment of approximately 70 billion won, is part of a supply contract for airbag fabric signed with global automotive safety parts company Autoliv in December last year. The factory is expected to be completed by June 2027, with production set to begin in January 2028. Following this, the company plans to stabilize production and expand supply volumes by 2029.
Kolon Industries' existing factory in Vietnam has been producing airbag cushions using fabrics manufactured in South Korea and China. This investment will see the installation of new weaving, processing, and coating facilities at the Vietnam plant, establishing a consistent production system that covers everything from fabric production to cushion manufacturing. The new factory will incorporate the latest production technologies, which are expected to maintain long-term competitiveness.
Heo Seong, President of Kolon Industries, stated, "The establishment of this factory in Vietnam is an investment aimed at providing world-class airbag materials reliably to one of our most important clients, Autoliv. We will continue to strengthen our competitiveness in the global automotive materials market based on differentiated technology and production capabilities."
Christian Swahn, Senior Vice President at Autoliv, remarked, "Kolon Industries has consistently met Autoliv's stringent product standards for nearly 30 years, supplying high-quality airbag materials reliably. We expect the Vietnam factory to play a significant role in enhancing the global competitiveness of both Kolon Industries and Autoliv."
Meanwhile, Kolon Industries has been expanding its local automotive materials production base, having completed a tire cord factory in Binh Duong Province, Vietnam, in 2018. The company operates production facilities for airbag materials in China, Vietnam, and Mexico, and is recognized as the world's second-largest supplier of airbag materials. Autoliv is the largest customer of Kolon Industries' airbag business.
* This article has been translated by AI.
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